Only hedge funds bleed

I’m not a huge 60 Minutes fan since some of their segments are nothing but hit pieces, showing only one side of the story to fit their agenda. But I am interested on their upcoming show, with one segment described as follows:

Sunday, Mar. 26, 2006

BETTING ON A FALL – Investment pools for the very rich are known as hedge funds. One of the major ones is being accused of spreading negative information about a major company and then betting on its falling stock price. Lesley Stahl reports. Janet Klein is the producer.

I’ve heard rumors that Northfield (NFLD) will be the company in the piece or at least mentioned as one stock manipulated, which is fine with me since the Wall Street Journal saw fit to do their own hit pieces on the company. Obviously since I have a vested interest by owning NFLD stock, I’m biased.

But after reading press releases from places like Denver Health and the University of Kentucky (among many others) on why they are continuing the study, and West Virginia University who is joining the study despite the negative press, the bias of the WSJ pieces is clear since their interviews consisted of someone with ties to a hedge fund and a former officer of a competitive company.

I have no problems with hedge funds in theory, but I do when I see manipulation like what has happened with Northfield. I don't believe their trial is in jeopardy since the current phase is almost over and the oversight committee has reviewed results repeatedly and given their blessing to continue. But having been in companies hit with frivolous lawsuits and the amount of time and resources consumed to respond instead of focusing on the core business is frustrating.