Hedge Funds Blowing Up?

I don't know the validity of the rumors but everywhere today there was talk of another major fund blowing up. Here is one of them. I would guess before this is all over with we will see more than a couple of funds make headlines by shutting their doors.

http://online.wsj.com/article/SB122056054369301101.html?mod=MKTW

Speculation sweeping the market that large hedge fund Atticus Capital is liquidating its positions and closing down is not accurate, according to executives of the firm.

"We've heard these rumors as well and they're not true," says Tim Barakett, founder of Atticus, which has about $14 billion under management.

but

Some stocks that Atticus has held in recent months were clobbered Thursday, including Burlington Northern Santa Fe Corp., down 3.7%, Union Pacific, down 6%, and MasterCard Inc., down 5.9%.