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Posted By: Corey R. Shanus

My guess is that unless hedge funds know what they're doing (i.e., making acquisition decisions based on real knowledge and understanding of what they're buying), they will not be successful in garnering high returns for their investors. Spending a lot of money in and of itself will not be enough. I recall an attempt by a well known collectibles company to generate investment returns by spending heavily in the Halper sale. They bought several million dollars of memorabilia, only to ultimately be forced to liquidate some time later at an overall loss. At the time they made their acquisitions, others opined that for the most part they paid too much and bought items that did not reflect the cream of the memorabilia market.