Reuters – Laurence Fletcher reports today on rich individuals with high risk appetites who are getting frustrated with modest hedge fund returns:
Many rich people were attracted to hedge funds by stories of George Soros’s $1 billion profit from his speculative attack on the Bank of England or John Paulson’s $3.7 billion earnings in 2007 betting on the subprime meltdown.
But institutions — who now account for over half of all hedge fund assets — often prefer lower-risk funds, targeting single-digit or low double-digit gains…
