Hedge Fund News From HedgeCo.Net

Risky Strategy Sinks Small Hedge Fund

October 2, 2015 : Permanent Link

(New York Times) It was an upstart hedge fund that pitched large returns in periods of market turbulence by relying on a complex and controversial trading strategy. At the height of the 2008 financial crisis, investors would have had a gain of more than 600 percent, according to projections in investor documents for the new hedge fund, Spruce Alpha. But when markets again turned volatile…Spruce Alpha fared worse than most, losing investors 48 percent of their money….

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