Hedgies cut risk as markets founder

Hedge funds are taking pain from the events of last week, but they are taking steps and cutting risk, even if it means posting a rotten month in August. As an example of a contrasting, obdurate stance, over in Thailand, the local banks are, as usual, in a state of denial, refusing to mark-to-market their CDO holdings on the rationale that they now plan to hold on to them until maturity.Whether or not this makes a mockery of modern accounting practices, many retail investors will be fa…