LONDON (Reuters)- Hedge funds with geared wrong-way bets in hot areas such as commodities and emerging markets are feeling the squeeze from market falls, but some top managers are using this opportunity to pick up stocks they like on the cheap.
Growing fears the U.S. will slip into recession led to widespread falls in stock, credit and commodity markets on Monday and Tuesday.
Hedge funds entering 2008 with a long bias in areas such as soft commodities and emerging markets raced to unwind positions, with pressure coming from prime brokers keen to reduce their leverage.
