Hedge Funds Are Selling Stocks for Redemptions: "Stephen Soo, an analyst at TA Securities Holdings Bhd., comments on the cause of stock declines in Asia. He spoke by phone from Kuala Lumpur.
Asian stocks tumbled today, extending a global rout with its biggest drop in three years. Malaysia's main stock index, the Kuala Lumpur Composite Index, is set for its steepest two- day decline since September 2001.
On sale of stocks by hedge funds:
"Hedge funds are dumping their positions to de-leverage. They are raising cash in preparation for redemptions from their funds. The signs are all there. They have to prepare for
redemptions'' in the U.S.
"As the situation gets worse, the hedge funds have no choice but to sell. It's a domino affect.''