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Unformatted text preview: investors, and warned that its managed assets at year-end are likely to slump about 72%, to $2 billion, from a year earlier. The pressure of compounded leverage is doing extra damage to funds of funds. They are down 18.7% this year, compared with 15.5% for individual hedge funds, BusinessWeek notes. Also crumbling is fund of funds' reputation as a safer alternative to hedge funds, which helped the vehicles gather up $747 billion by year-end 2007, or 43% of the hedge fund industry, according to BusinessWeek . The situation is especially tricky for leveraged funds of funds like CMA Global Hedge PCC , BusinessWeek notes. The fund's manager wants to sell shares to dig out of debt, but its underlying funds have suspended redemptions. By Joe Morris...
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This note was uploaded on 04/09/2010 for the course NBA 5450 taught by Professor Richardmarin during the Fall '09 term at Cornell.
- Fall '09