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. The average hedge fund's return has fallen from a peak of 14.7 per cent in 2008 to just over 5 per cent, he said.