Reuters- Hedge fund advisers and fund managers said they believed the crisis was far from over, with the roughly $140 billion of write-downs at banks so far around the world only the beginning, keeping lending conditions tight and fears high about the viability of creditors.
As a result, last week many funds took profits on positions in which they were ahead and used the cash to plug holes in their portfolios, causing the biggest crash in the commodities market in 50 years.
NEW YORK (Reuters) – Hedge funds paused on Monday from last week’s aggressive moves to pare debt and add cash to their balance sheets, but few are expected to return to a reliance on strategies involving heavy borrowing because of the permanent damage of the credit crisis.
Hedge fund advisers and fund managers said they believed the crisis was far from over, with the roughly $140 billion of write-downs at banks so far around the world only the beginning, keeping lending conditions tight and fears high about the viability of creditors.
As a result, last week many funds took profits on positions in which they were ahead and used the cash to plug holes in their portfolios, causing the biggest crash in the commodities market in 50 years.
