(1888PressRelease)
October 04, 2007 - The news that two listed hedge funds are to attempt to raise up to £300 million ($612 million) of new money will act as a barometer for investor confidence in the industry, it has been claimed.
Strong demand has convinced both Cazenove Capital Management and Dexion of the advisability of raising new money, which in both cases will be achieved via C share issues.
However, the decisions come in the backdrop of an extremely poor August for hedge funds, which saw almost all funds - regardless of strategy - badly hit.
Indeed, the average hedge fund lost 1.5 per cent in August, according to the Financial Times - despite promising to deliver consistent returns regardless of market performance.
Despite this, it has been noted that hedge funds that have done well in the past are able to secure new money while under-performing counterparts are struggling to do so.
"You are basically finding out whose hedge funds are genuinely set up to hedge," Andrew Ross, head of Cazenove Capital, told the British daily.
Further analysis of the hedge fund sector could be provided by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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