Hedge Funds buying everything

Two good stories as of late: Today we have an article about hedge
funds lining up to buy baseball teams: http://snipurl.com/pw2x

The Wall Street Journal also has a story about Hedge Funds getting
into the movie industry. The most interesting part of the article is
that Hollywood used to call outside investors "dumb money" yet
apparently, at least in this article, the hedge funds are not
considered dumb money. http://snipurl.com/pw37

All of this will end very badly. Perhaps what we see here is in fact
the triumph of market efficiency as opposed to hedge funds not having
anything else to invest in and getting involved in assets that they
are not experts in. Still, the reality is that even with hedge funds
moving towards two-year lockups, these investments are essentially
illiquid for greater than two years. All it will take is one
flame-out in these new areas and investors will run for the hills,
creating death spirals for most of the funds involved.