Iraqi conflict leads to withdrawal of capital from US hedge funds

US-based investment funds, including hedge funds, have experienced significant withdrawals of capital from Middle Eastern investors, but UK funds are not experiencing the same treatment.

In what is seen as a politically-motivated response to the Iraqi war, a flight of capital has been identified in US portfolios since hostilities began, resulting in liquidity drying up in commodity markets, according to Malcolm Freeman, head of the metals desk at City of London broker, IFX Markets.

He said the

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