Bloomberg – Hedge funds created to protect investors against market shocks in the wake of the biggest recession in seven decades are soaring as Europe’s intensifying debt crisis infects markets globally.
Saba Capital Management LP’s $550 million so-called tail risk fund has gained 11.5 percent in September after increasing 15 percent last month, according to a person with knowledge of its performance. Pine River Capital Management LP’s $160 million tail fund advanced 14.5 percent in August, an investor familiar with the returns said. They asked not to be identified because the results are private.
