Hedge Funds

The following is directly from Barclay's internet site:
 

A hedge fund is an alternative investment vehicle available only to sophisticated investors with significant assets.
Hedge funds are not regulated by the U.S. Securities and Exchange Commission.
Hedge funds are best known for using sophisticated and risky investments and techniques.
Many hedge funds also use an investment technique called leverage, which is essentially investing with borrowed money.
 

Rich people, using borrowed money, making risky investments in an unregulated system. What could possibly go wrong?

I'm waiting for James to weigh in on this.  He often gets funds for maintaining hedges.