| Investors on hold with hedge funds |
With equity markets worldwide losing over a fifth of their value last year, bringing further pain and anxiety to institutional and private investors, hedge funds attracted renewed attention and scrutiny. Was this the time for mainstream investors finally to embrace them, or would it be better to harden resistance to their allure?
A sceptical view seemed to have some support – plenty of hedge funds closed down in 2002. At the same time, though, some hedge funds with simple and clearly logical strategies, such as dedicated short-bias equity funds, returned between 15.84%
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