Financial Times FT.com

Redemption fears encircle industry

By James Mackintosh in London

Published: September 29 2008 23:33 | Last updated: September 29 2008 23:33

Hedge funds used to boast to potential clients about the quality of their investor base, highlighting pension funds such as Calpers and university endowments such as Harvard’s.

Now worried clients are scrutinising the list of fellow customers looking for weak names who might bail out, forcing the fund to sell assets and hurting returns.

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