Summary
LONDON (Reuters) - Long/short equity hedge funds are set to post poor performance for March as the bailout of Bear Stearns and commodity price falls hit recently profitable trades, according to HSBC Alternative Investments.
Many hedge funds have been short the financials sector since the credit crisis began last summer and some banks started revealing large write-downs related to the subprime mortgage meltdown. However, that short trade turned sour last week after JP Morgan agreed to buy troubled investment bank Bear Stearns and the U.S. Federal Reserve agreed to take control of a $30 billion portfolio of Bear Stearns assets.See the full content of this document
Extract
Returns Hit by Bear Bailout, Commodities Fall
"When we had the bailout of Bear Stearns ... there was a sea change, the valuation of financial shares really rebounded quite strongly and we're stil...
See the full content of this document
Sponsored links
