The rumor mill is out of control at times like these. But let's face, some rumors--mind you only some--tend to be prophetic. Of course that's kind of like seeding 20 mutual funds to find that one winner. But no one would be surprised if more hedge funds suspend operations in the face of heavy redemption requests. The lucky ones will find buyers. Sowood Capital is a great example. More than rumor: Bear Stearns has reported suspended redemptions on yet another fund, according to FINalternatives. The Asset-Backed Securities Fund does not seem to be in danger of failure, however. It has apparently plenty of cash to meet margin calls and seems to have little exposure to subprime debt. So this may be one of those cases where fear takes hold and investors stampede on emotion. These are dangerous times.  

For more:
- here's the FINalternatives article (reg. req.)