Marketwatch – The main hedge fund run by Bruce Kovner’s Caxton Associates L.L.C. has stopped making strategic, longer-term investments, according to two people familiar with the situation. <\/p>\n
The decision shows how the hedge fund industry’s foray into longer-term investing, such as private equity, in recent years has produced tensions between fund investors accustomed to quick returns and fund managers who push for longer-term investments. It doesn’t necessarily mean Caxton’s strategic investments are performing poorly though. <\/p>\n<\/div>\n
Private-equity strategies usually require longer investment horizons, locking up investors’ money for several years. In contrast, hedge funds have traditionally focused on short-term trading and have allowed investors to withdraw their money more frequently. <\/p>\n<\/div>\n