Hedge funds and volatility: The ins and outs of ups and downs

Hedge funds returns are rising; does this mean volatility is back?

Hedge funds have enjoyed a strong start to the year, having produced, on average, positive returns in the first two months [see Market round-up, this issue]. Some managers attribute the results to a long-awaited return in market volatility but views are mixed on whether or not it really has come back.

Peter Borish, CEO of Twinfields Capital Management, a global macro, rapid-trading shop focusing on treasuries and currencies, is positive that market volatility has returned and will be sustained.

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