Credit hedge fund allocations to rise

Investors are set to commit more capital to credit hedge funds as a bid for diversification, according to Deutsche Bank’s alternative investment sentiment survey, released yesterday.

Nearly 700 firms, with a combined total of more than $900 billion invested in hedge funds, responded to the survey, which showed allocations to credit opportunities strategies will increase by some 16% during 2007.

Convertible arbitrage is another potential winner, according to the survey’s findings. “After seeing r

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