Why doesnt a hedge fund buy 20 billion dollars worth of oil and then dump it on the market for way less?

Question

Could this possibly lower prices? Market manipulation?

Answer 1

It would lower oil prices temporarily. It would also destroy the value of the hedge fund, thereby causing anyone  that invested in the fund to lose money. No hedge fund manager wishes to commit professional suicide like that.

Answer 2

Agreed. No hedge fund would do this as stated above since the intent of hedge fund is to make their investors or money or at least protect it. They are not vehicles for greater social good at the expense of returns.

Here is a video on what is a hedge fund - http://richard-wilson.blogspot.com/2007/...

- Richard

Richard Wilson

Hedge Fund Group (HFG)

http://hedgefundgroup.org