Hedge funds are betting on a disaster hitting the financial markets within the next several quarters, with managers of both large and small hedge funds holding onto historic levels of cash. That so-called dry powder gives them the liquidity they need to quickly jump in if markets sell off quickly, according to numerous hedge fund managers and industry consultants. "Most hedge funds I see are carrying lower market exposure than I've seen in some time," said Brad Balter, founder of investment advisory firm Balter Capital Management. "This is not to say they are net short. They simply want to conserve their buying ... (full story)