John Paulson, the billionaire hedge- fund manager having his worst year, is cutting risk in his hedge funds further as the European sovereign-debt crisis roils markets, according to two people briefed on the matter. Paulson & Co., which has $28 billion in assets, has cut the so-called net exposure in its main hedge
A recent article by Stephen Taub (“More than 80% of Hedge Funds Underwater”, Institutional Investor, October 21, 2011) found that 80% of hedge funds lost money on a year-to-date basis, as of September 30. I think hedge funds play a diversifying role in most client portfolios, but they are certainly not a panacea.