Reuters – A mood of fear and nervousness hung over Japan’s hedge fund industry on Monday as regulators widened an investigation into the suspected disappearance of more than $2 billion in corporate pension funds managed by Tokyo-based AIJ Investment Advisors Co.
Hedge fund industry sources said they feared the scandal could drive Japan’s pension funds away from hedge fund investments, dealing a blow especially to independent and small-scale funds that look after less than 5 percent of the nation’s around $800 billion in company pensions.
