Who's Funding Hedge Fund Hotels?

HEDGEFEST '07 Indian hedge fund hotspot Taj Mahal PalaceDealbook today signals the beginning of the end of the halcyon days of hedge fund excess, zeroing in on "hedge fund hotels," posh plug-and-play suites in places like a Philip Johnson-designed office tower in Boston's financial district, or in a London office that once housed MI5 and now goes for $200 a square foot, or in Singapore, where suites come complete with "executive secretaries." There's a problem, though. The hotels are often used as enticements to get hedge fund managers to invest in the banks that back the suites—using shareholder money. So, essentially, shareholders aren't just investing in a public company but backing its efforts to pad the pockets of hedge fund fat cats, too.