Thursday, October 30, 2008

SAC's Cohen, Einhorn Raise Money as Most Hedge Funds Shrink

Many hedge funds are imploding due to the current crisis and that's good: they were like children with loaded guns and too dangerous for the markets. However, some of practitioners of one form of speculation--naked short selling--are now arming themselves with more funds, ostensibly to continue doing what they love to do: destroy companies. SAC Capital's Steve Cohen and Greenlight Capital's David Einhorn have been raising a lot of fresh money. Both were instrumental in the demise of Lehman. Until we outlaw this activity you should expect to see other firms targeted.

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