Another hedge fund in trouble?

Pardus Capital Management, a New York hedge fund, became the latest to halt redemptions, according to Financial News Online. The twist here is that the fund was not a credit fund--and it used no leverage. Rather, it invested in a small number of stocks, such as UAL and General Motors and Virgin. It remains to be seen if we'll see a wave of equity-oriented hedge funds take a fall. The move is another reminder of the extreme volatility that many funds face. Investors in this fund however, while unhappy, may be better off riding out the storm.    

For more:
- here's the Financial News Online article

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