Handicapping The Hedge Hogs.

This article discusses the financial stability of hedge funds. An investor looks at why, in 2006, multiple billion-dollar hedge funds suddenly exploded. In 2006, the S&P 500 was up 8%, while hedge funds were up 7.2%. The author reports that the problem is that too many hedge funds are doing the same thing, and market volatility has been low. Volatility is what drives performance because hedge funds can leap in and out of the game, profiting from wild swings in the markets.