Wheel, Deal, and Steal: Deceptive Accounting, Deceitful CEOs, and Ineffective Reforms

Chapter 20. Hedge Funds That Don’t Hedge

While investors are still learning what happened to them in the 1990s and are trying to get their money back, they find themselves facing a new set of dangers—in some cases from the same people who victimized them before. And while it’s been difficult for all investors, smaller investors have had a particularly tough time. During the 1990s small investors lost out to professional financial firms that manipulated the market; this time they’re likely to lose out—if they’re not careful—to other sophisticated investors as well.

The Next Big Thing—The Fund of Funds

Most investors got badly burned in the Internet and telecom bubbles. Those who have money left, or who have new savings coming in and are seeking investments ...