Cash by nature
Fund managers have been adopting the strategy of using cash as a safe haven
Many hedge funds remain underinvested with relatively high cash positions, despite reducing cash holdings as uncertainty over Iraq diminished, according to a survey of hedge fund managers by Hedge Funds Review.
Cedric van Rijckevorsel, a portfolio manager with 3A Asset Management, says such a position may become untenable for hedge fund firms given cash's low returns of 1% in the US and 3.5%, recently lowered, in the UK.
The war in Iraq had boosted cash positions in many hedge funds earlier this
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