Amit Chokshi_

Are Hedge Funds a Risk to the System? The Proof is in the Provenge

Right, I realize that and many funds were forced to cover but again, how does that speak to arrogance. Tom Brown and David Einhorn had good portions of their portfolios in companies like New Century and are likely underperforming due to these positions (Einhorn I believe was on the board of New Century so it made his predicament even more difficult). These two guys are phenomenal investors that run hedge funds and stocks like New Cent immediately traded down on days when bad news was released. Would you call them arrogant or reserve those comments soley for funds that short rather than go long?

Also, while I'm not familiar with the short interest build up in DNDN, do you believe the majority of funds shorted at the low and not in the $5-$8 range and a good portion of the short float was just funds rolling over their exposure in advance of the news? DNDN was a binary play and I think any fund manager on the long or short side recognized that, it was either a 0 or a 5x return event, so if you lose on either side you'd be in trouble. But you're also talking about a microcap biotech, even at its current valuation, so to expound on this being some sort of catastrophic event for fund managers is extreme in my view.