Government bonds are supported by low rates

Fixed income hedge funds have been performing well, but there is plenty of potential for further gains, according to Andy Seaman, manager of MSG Partners' Stellar High Yield hedge fund.

There has been increasing interest in them among investors because global economic data has shown a sharp slowdown and fears grew of a double dip recession in the US, he says.

Winners over the past few months have been those fixed interest funds that are long on government bonds and short on corporates, says Seaman

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