So says the WSJ:
Hedge funds, viewing the carnage caused by the credit crisis, are starting to weigh opportunities in the battered financial sector.
It is another sign for bullish investors that better times are ahead. But those expecting hedge-fund managers to ride to the rescue likely will be disappointed.
Debt-trading specialists already have a combined $100 billion that they are getting ready to put to work, according to participants in the market. Now, a growing number of hedge funds are raising more money from investors to buy beaten-up debt products or to purchase stakes in struggling financial companies.
John Paulson's Paulson & Co. is the latest to cause a stir, with plans to launch a fund late this year to make equity investments in financial companies. When a bear like Mr. Paulson senses bargains, it could be a sign that the worst is over.