your have just been warned

Majority of hedge funds say '08
U.S. recession likely

September 26 2007

Reuters- A majority of hedge fund managers say a U.S. recession is
"very likely" in 2008, but fewer than one in five said an economic
slowdown would be bad for their funds, a survey of several-hundred
hedge fund managers released on Tuesday found.

Rothstein Kass, a provider of auditing and tax services for funds,
said it sponsored the survey that polled 239 hedge fund principals
with a median $492 million in assets under management.

More than 61 percent of those polled said they believed a recession
was "very likely" in 2008, the survey found.

Still, only 17 percent of those surveyed viewed an economic downturn
as bad news for their funds, with some 66 percent suggesting a
recession would bring investment opportunities.

"Respondents seem undaunted by prospects for a recession in 2008,"
said Howard Altman, co-managing principal at Rothstein Kass. "While
over 43 percent will likely change their fund's particular
investments, fewer than 15 percent anticipated changes to the fund's
underlying investment strategy."

In case you didn't catch that, they say 'recession is "very likely" in
2008,' . . . . . 'but fewer than one in five said a... [it] would be
bad for their funds'.

i.e.,

1. The are going short and will accelerate the downfall.
2. Any perceived tinderbox of weakness will see gasoline thrown at it.
   
3. This is a wake up call.

from Hedgeco.net

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