An increase in market volatility should be providing hedge funds with their best moneymaking opportunities in months. The only problem is some of their investors are preventing them from capitalizing. Many of the biggest funds now cater mainly to large, conservative investors such as pension funds and college endowments. Institutional...
Hedge fund returns have been made less volatile in the past three years as institutional investors discouraged high - stakes investment in favour of disclosure and transparency , according to Martin Visairas , global head of capital introduction at Citigroup . Where Donald ##dge 's victory and the UK 's vote to retain the European Union could once have led to big losses or profits for hedge funds , shored losses and a declining stock market led to minor losses for the investors . Institutional losses account for 71 % of total hedge - fund related losses , compared with 20 % in 2002 , according to Citigroup .