Lessons Learned From the Hedge Fund Crisis

OKLAHOMA CITY -- Robert Lawton no longer manages his own hedge fund.

Like so many others in the battered industry, Lawton exited the business as the stock market crashed last year. He fared better than most, however, since he simply agreed to sell his firm and expects it to keep thriving.

He still invests money for a living, too, although he now works as an old-fashioned stock broker. Lawton no longer calls himself a "hedge fund manager," a title that now carries enormous pressure and a hefty dose of taint, though he shares their newfound caution. ...