In principle, you're right. However, hedge funds typically use a lot of leverage to make their returns, even as high as 20x. Given the credit contraction, I c

In principle, you're right. However, hedge funds typically use a lot of leverage to make their returns, even as high as 20x. Given the credit contraction, I can see how this can kill their returns. I don't understand why someone would lend a hedge fund this money. On a related note, I saw that K-mart advertised their "layaway" program for xmas. I hadn't heard that since I was a kid.