CNBC – Hedge funds remain cautious and defensive after largely sitting out the rally in the U.S. stock market since the start of June, contributing to the lowest U.S. stock market trading volumes since 2007.
The lack of conviction comes as the industry struggles with lackluster performance that leaves a quarter of hedge funds at least 10 percent below their high water marks — the point where they can charge investors incentive fees — according to Credit Suisse.
