Hedge-Fund Woes Draw in Bargain Hunters

This summer's troubles for the hedge-fund industry have whetted the appetite of opportunistic buyers and insolvency experts, who are hunting through the wreckage in search of bargains.

Fifteen hedge funds with more than $100 million under management have suffered severe problems this year -- such as a sudden, large loss, a regulator freezing assets or the departure of a key manager -- that have forced them to suspend redemptions or shut down entirely. Investment consultants and prime brokers -- which finance hedge-fund trading -- say the number is more than the total number of hedge funds that have suffered similar ...