Today's Outrage: Don't Mourn for Hedge Funds

It seems like the heady days of hedge fund hell are coming to an end.

JPMorgan Chase (JPM Quote) is closing down its hedge fund business and two Boston funds also decided to give up the game.

Apparently, the opportunities are drying up for hedge funds, which some say profit by manipulating the market with short sales, derivative plays and leveraged positions. (The truth is that nobody really understands much about what hedge funds do because they operate largely outside of the normal regulatory environment).

One way to interpret the decision by JPMorgan to exit the hedge fund business, following similar moves by Credit Suisse (CS Quote) and Deutsche Bank (DB Quote), is that big banks are refocusing on businesses they actually understand. ...