It is hard to believe but sometimes even hedge funds make investment mistakes. Sometimes a bunch of hedge funds make the same mistake at the same time. After Katrina they were all playing from the playbook that said “buy the reinsurers after a natural disaster.”

Nathaniel Baker at puts numbers to this phenomenon, due in large part to the implosion of PXRE Group (PXT) last week. Baker documents a number of the hedge funds involved in this trade and the investments they made in light of this investment hypothesis.

Speaking of hedge funds, Alistair Barr at reports that Kohlberg Kravis Roberts & Co. is planning on rolling out a hedge fund of its own that will focus on debt instruments.

Svea Herbst-Bayliss at Reuters reports on the forthcoming hedge fund research effort coming from Morningstar (MORN).

CXO Advisory Group tries to put the various charges companies are making against hedge funds and some “independent” research groups into an understandable schematic.

Roger Nusbaum at has some insights into how an individual investor can cook up their own “hedge fund.”