7000 dow. here we come.wont be long now, page-43

These hedge fund stories remind me of the big CDS scare - remember how that was going to explode into some $65 trillion disaster? From what I hear hedge funds are sitting on record levels of cash in order to fund redemptions. Investors leaving hedge funds will have the same effect as investors leaving the market as individuals or through a pension fund. At the same time other investors may choose to enter the market. Whether they do it via a hedge fund or not isn't such an important issue as the net effect of buyers versus sellers of any type.

As for it all happening on one day - that's the final date investors can ask to redeem but they won't expect the cash for a couple of months. The inference that they all need to start dumping on that date is misleading. Investors can put in redemption claims every day of the year and hedge funds buy or sell assets any day of the year.