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7 For '07: Melissa Lee, Power & Money

High-profile failures in the hedge fund industry have prompted new calls for greater regulation, but the investment vehicles will continue to attract savvy investors because of their often out-sized returns, thanks partly to some smart bets on hot commodities in recent years.

It's been a record year for private equity deals, with some $360 billion in deals announced so far. And private equity groups remain busy raising money, so look for another year of deal making. Among the frequently-named targets: the beaten-down homebuilding sector and household names like Barnes & Noble and Eastman Kodak.

Follow the hot money with Melissa's blog.

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EKDKQ
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KODK
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