Hedge funds bitten by the Indonesian beast

By Simon Osborne | 8 July 2009
Keywords: hedge funds
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‘New’ Indonesia looks a whole lot like ‘Old’ Indonesia. CQS, Marathon, Highbridge and GLG are understood to be suffering woes at Indonesia’s latest reversion to type.

Once upon a time, Indonesia had a reputation for sharp practise. However, the balloon of epiphany went up after the Asian economic crisis of the late-1990s. The gatekeepers of Indonesia realised that, in business, their old game was up, and in order to obtain foreign investment, they would have to play fairly and decently. They did just that and everyone lived happily ever after.

It makes a nice fairytale ending, but who really is that lying in the bed of Little Red Riding Hood's granny? And why does granny have such big teeth?

Hedge fund investors are finding the wolf ...

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