The deteriorating outlook for the US economy has persuaded many pension schemes to take the protective measure of hedging their equities. One of the latest to do so is Denmark’s ATP fund, which has hedged a “substantial” portion of its equity portfolio because of fears of a 2008 US recession.

The fund has purchased a number of put options for many of its equities and hinted that it will take this even further if the US outlook continues to deteriorate. It says any further hedging will be aimed at the more liquid parts of the portfolio, but ultimately it would be fairly broad based.