EVER wondered just how rich hedge fund managers are?A new list of the top UK earners has been released, and it appears that the eye-watering figures are beyond even what most of us could have imagined.
Of course, hedge fund managers are the new bogeymen of the financial world, supposedly profiting from the financial misfortunes that the rest of us are enduring, employing their sharp practices to ensure that the markets bend to their will.
By their very nature, hedge funds profit from volatilty, but that volatilty would be there, regardless of whether or not they were trading - notwithstanding the still-unexplained mischief surrounding one or two of the big clearing houses a fortnight ago. The credit crunch happened because the big financial institutions failed to securitise the risk on their books, pure and simple.
Instead of berating hedge fund managers for making a buck (or several hundred million) in a downturn, we should examine more closely how they do it, and if there's anything the rest of us can learn from them.
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