Global Hedge Fund Returns Decline 4.68%, Biggest Monthly Drop in 10 Years Hedge funds worldwide in September recorded their biggest drop since August 1998, hurt by losses in commodities and fixed-income convertible arbitrage securities.

Lehman Brothers Unit Sued by Pickens Funds Over $59.9 Million in Losses Texas billionaire T. Boone Pickens, whose hedge fund has lost about $1 billion this year, sued a unit of defunct investment bank Lehman Brothers Holdings Inc. for $59.9 million over claims it broke a default agreement.

U.S. Rescue Hiring Shows Uncertain Treasury `Anxious’ to Buy, UBS Says The Treasury is “anxious” to begin buying mortgage assets under the $700 billion U.S. rescue program though it’s unsure about how the plan will work, suggesting purchases will begin in six to eight weeks, UBS AG analysts said.

Bernanke Fails to Quell Market Turmoil as Investors Clamor for Rate Cuts Federal Reserve Chairman Ben S. Bernanke’s message of readiness to cut interest rates failed to assuage investors clamoring for immediate action to support jobs and growth.

Buffett’s Paper Profit on GE, Goldman Sachs Erased by Stock Market Plunge Billionaire investor Warren Buffett’s instant paper profits on Goldman Sachs Group Inc. and General Electric Co. have been wiped out amid the stock market’s worst yearly slump since 1937.

Venture Investors Hold `Come to Jesus’ Meetings as Credit Crunch Hits Home Venture capital investments will probably fall this year for the first time since 2003 as the financial crisis cripples the markets for acquisitions and initial public offerings.