karpodiem

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

When you have a sizable amount of equity in the hands of fewer and fewer institutions, the chance occurrence of a position going bad and bringing down the house, increases. Whether or not this manifests and brings down a few more firms in the coming years remains to be seen, but typically after a couple of well documented cases in which this has occured, I would think there are a few more safeguards in place that such a event does not transpire.