Hedge fund problems still loom

"When you compare Lehman or AIG with Ospraie the losses are significantly smaller and the hedge fund industry seems to be doing relatively well," said Mark Yusko, chief investment officer at Morgan Creek Capital Management.

That could all change, however, as the once high-flying industry faces a two-pronged problem -- fewer tools to help mangers deliver turbo-charged returns and panicked clients running for the exits in the face of mounting losses.