HEDGE FUND GHOULS

Trend-following hedge funds, which trade systematically based on mathematical models, profited handsomely from the spike in oil. Many of these funds had long positions in oil – meaning they were betting prices would continue to rise – before Hurricane Katrina touched down in Louisiana.
Post-hurricane, crude oil prices shot up about $3 a barrel – or $3,000 per futures contract. While the NYMEX exchange limits funds to 20,000 contracts, most funds hold between 5,000 to 10,000, according to traders. A fund with 10,000 contracts would have netted a cool $15 million from the $3 spike.

BUT These same bleeps were doing this!

NEW YORK (CNN/Money) - For some hedge funds, getting involved in the reinsurance business looked like a good idea last year, when some high-profile shops set up reinsurance operations. Then came the $16 billion hurricane.
Cash-rich and hungry for untapped investment opportunities, a handful of hedge funds set up or invested in firms that specialize in reinsurance, which is coverage that insurance companies buy to pass on some of their risk to a third party – essentially, an insurance policy for an insurance policy. When insurance companies get hit up by their policyholders, the insurance companies in turn hit up the reinsurers.