In Duff McDonald’s paper, The Running of the Hedgehogs, he talks about a certain type of investment called hedge funds. These funds are compared to buying multi-million dollar art pieces that can be sold at a higher price later on, a past time for the ultra rich. The article talks about as of now, there are few regulations regarding hedge funds versus mutual funds. But mentions there are 9,000 hedge funds, with 351 managing $1 billion (page 166). He further explains that if 1 out of 3 prominent hedge funds were to blow up, it would cause a domino effect to the broader markets (page 169). Which leads me to the question of why are hedge funds not closely regulated if they can have such a severe effect on the market? In addition, another lack
