How ‘re-correlation’ risk could cause a pod-shop unwind
Some think an underappreciated vulnerability might one day lead to a 2008-type crisis
Capstone Investment Advisors has been among the beneficiaries of a wave of enthusiasm for multi-strategy hedge funds in recent years. And yet Tom Leake, the $12 billion firm’s head of solutions, is telling Risk.net about how it could all come crashing down.
“Many believe there could one day be a hedge fund equivalent of a Lehman or 2008 type event,” he says. “A big, correlated unwind would be very
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