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Wednesday, June 08, 2005
 
Hedge Fund Myths
Hedge Fund Myths
Critics of the hedge fund industry contend that these funds’ activities have negative
consequences for markets and for the economy. Martin Mayer, talking about LTCM, expressed one view on the value of the industry: “It is probably worth noting that the work done at LTCM, while not illegal or sinful, was without redeeming social value.”7 Calls for increased regulation or more direct government oversight of the industry are
often based on commonly held, but largely unsubstantiated, beliefs about hedge funds.

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