Due to the recent problems of sub-prime effect on funds holding CDOs and asset-backed securities, there have been many reports of many hedge funds and mutual funds losing a lot of money. But what is confusing is that these reports make no distinction between the lost of NAV and the lost of fund size. The headlines just say lost a lot of money. But what is this a lot of money? Is it a reduction of fund size or the reduction of NAV? I think these reports don't know the difference. As a result, this further caused further panic sell-off because people thinks that it is a lost of NAV. I personally don't know the lost is referring to what. In fact, I find it quite funny the manner these reports are written. Give Your Comments