Industry news | fixed income hedge funds perform badly, driving away investors
Investors could redeem large amounts from fixed income hedge funds soon after the recent bond market falls, both due to funds' performance being wiped out and a healthier economic outlook, according to fund managers. David Smith, chief investment officer at GAM, said the recent sell-off and volatility could pose a serious longer-term risk to the industry. Some investors who viewed fixed income as a lower-return, lower-risk class could lose confidence in hedge funds, he said, especially if their managers had been caught out by recent events. "Many mortgage backed securities have droppe...
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