Hedge funds not to blame

Laying the blame on hedge funds for market volatility is wrong, according to analysts at UBS Warburg, as they only control 2% to 3% of global managed assets. A recent note from the broker on short-selling reported that although hedge funds account for roughly $600bn, outright short sellers make up just 0.11% of assets under management, compared with 0.12% of assets in 1990. 'Such a small asset pool can hardly have brought about the current situation,' said Alexander Ineichen, head of equity derivatives research at UBS Warburg. 'Two of the largest styles among hedge funds, equity hed...