3. Zombie Hedge Funds
At the worst of the market turmoil in late 2008, an estimated $175 billion of capital was locked up in illiquid hedge funds, according to Hedge Fund Review. It is estimated that some $50 billion to $60 billion remains locked up in zombie funds, out of the reach of investors.
—Jay Eisenhofer and Matthew P. Morris, partners with the shareholder rights law firm Grant & Eisenhofer, in an editorial about insolvent hedge funds, titled "Hedge Funds of the Living Dead."
Source: New York Times Dealbook
Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio