Hedge Fund Hell: Record Liquidations

Hedge funds have long been touted as a way for incredibly wealthy individuals to reap enormous returns, thanks to risky investment strategies. However, tough market conditions that persisted in 2008 have sent the industry reeling, with negative returns prompting clients to demand their cash back.

Prominent hedge-fund companies like Fortress Investment Group (FIG Quote) had placed restrictions on redemptions. Others, including Blackstone (BX Quote), Och-Ziff Capital Management (OZM Quote), Cerberus and Citadel are facing tougher times, as well.