Hedge funds hit by risk reversal fears in May and June

Hedges funds posted their worst performance since the height of the global financial crisis during the past two months, after the global stock market tumbled due to investors putting their money into cash over fears the sovereign debt crisis in Greece could spark a large risk reversal in financial markets, according to hedge fund research firms and asset managers.

Almost all hedge funds strategies recorded losses in May, with the only exception being short-selling strategies, according to resear