A Smoking June for Hedge Funds

[ShockediSay]

Source: WSJ

For some investors in the municipal-bond market, June added insult to injury.

In an otherwise bleak month for many investments, tobacco bonds were star performers, rising an average of 10%. Some jumped more than 60%.

But many municipal-bond funds missed out on the gains. They had been forced to sell the bonds months earlier, often at a big loss, after a credit-rating downgrade made them noninvestment grade.

Instead, the big beneficiaries were hedge funds that scooped up the bonds at pennies on the dollar. Municipal bonds overall returned 0.35% in June, according to Barclays Capital's municipal-bond index.



Read more: http://finance.yahoo.com/banking-budgeting/article/113085/hedge-funds-june-wsj;_ylt=AgiMyc2DU9Xh0SjGIPSZiHe7YWsA;_ylu=X3oDMTE1c2MxNG90BHBvcwM4BHNlYwN0b3BTdG9yaWVzBHNsawNhc21va2luZ2p1bmU-?mod=bb-budgeting&sec=topStories&pos=5&asset=&ccode=

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Isn't this great? Our municipalities are dying while our tax wlfare entitled Hedge Fund managers are lining their pockets.

[PATRICK]

1. The last to die in the desert

are the vultures.

[plumbob]

2. Excellent point, and I remember that and use it!

Thanks!

[patrice]

3. Follow THAT money! nt