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Old 10-18-2007, 10:48 AM
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Default How Long Before Hedge Funds Control The Rare Card Market?

Posted By: Chad

It's not going to happen. Investment managers may get involved at the request of a client, but hedge funds aren't going to waste their time. If a hedge fund did decide to drop 30 or 40 million into a baseball card fund, where are they going to get the cards and then, who are they going to sell them to? And how are they going to sell this plan to subscribers? And how are the subscribers going to get their cash back when they decide to sell their subscription? I'm not saying it's impossible, but the money isn't big enough to deal with the headaches. Also, what would a fund dedicated to baseball cards and memorabilia use as their hedge? Cards are definitely an investment opportunity, but I don't see how it could work at the scale a hedge fund would need it to work and how a hedge fund could deal with the illiquidity of the cards.

--Chad

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