Reuters – A mood of fear and nervousness hung over Japans 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 Japans 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 nations around $800 billion in company pensions. On Friday, Japans financial regulator shut down AIJ for a month amid suspicion it may have hidden losses in the $2.6 billion pension funds it managed.
