They are also rewriting some of the ground rules of capitalism. The Financial Times newspaper recently quoted a banking source as saying the enormous clout that comes from hedge funds having $1.4 trillion under management at the end of 2006 makes them the new JP Morgans.
For instance, although hedge funds own just 1.5% percent of global assets, they account for more than half of US bond trading, 40% of US equity trading, and 80% of distressed debt trading, according to the FT. Hedge funds' influence extends far beyond mere numbers, of...
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