Hedges clipped

Fund-linked derivatives

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Market volatility has become a fact of life for hedge fund managers. The fallout from the subprime crisis continues to keep the credit markets in the doldrums, equity indexes have whipped around violently, while foreign exchange rates have experienced their most volatile few months for the past decade. For some, the highly volatile, correlated market conditions have provided plenty of trading opportunities; for others, they have meant disaster.

Virtually all hedge fund strategies have found the g

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