Gut check time for hedge funds

The Financial Times notes that today is the day that some hedge funds will know exactly how much cash they need to cover what many assume is an onslaught of redemption requests. This will be interesting. It's unclear how this will play. It is certainly one item on the list of worries: No bank credit, uptight prime brokers, media coverage, more turmoil in subprime-backed securities. Most assume that quant funds will get hit hardest. Hopefully, we won't get a lot of en masse selling. Large macro funds could also get hit. If so, they will have no recourse but to sell what's liquid and that means stocks. So the worst is far from over. The truth is funds are starting to drop like flies.  

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