Article: Hedge funds may be next Wall Street 'bubble' to pop, say some analysts.

Byline: Tom Walker

Jul. 21--First came stocks, then houses.

Now some financial analysts see another potential "bubble" on Wall Street: hedge funds.

The classic signs seem to be there: accelerating returns over a long period, a big run-up in the number of such funds -- from about 500 to almost 8,000 in 15 years -- and, more recently, investor anxiety, withdrawal of funds and the failure of some large funds.

Affluent investors are drawn to hedge funds -- they offer high risk and, if handled well, high reward -- as a way to diversify their portfolios. But as the popularity of these funds has grown, some money managers have found ways to ...

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