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When Hedge Funds Blow - Original article written by Scott Johnston from Belstar Group. Tuesday, 20 May 2008. When Hedge Funds Blow Up. This post has been excerpted from the Belstar Group. LLC is a private investment firm based in New York, which provides alternative investment strategies including fund of hedge funds and stuctured products to financial institutions and individuals around the world. Rich Guys Get Theirs! How common are hedge fund blow-ups? .