(Reuters) AIG has been scaling back investments in hedge funds, which have borne the brunt of excessive market volatility in the past year.Big-name hedge funds favored by pension funds and the ultra-wealthy for their track record of stellar returns took a battering in the first quarter of 2016, with some posting their worst ever start to a year on record.
AIG’s weak results come at a time when the company is facing the possibility of having to set aside more capital as regulators worry about financial firms deemed “too big to fail”.