Financial Times FT.com

Wary hedge funds opt for a conservative approach

By Anuj Gangahar, Saskia Scholtes and Henny Sender

Published: May 9 2008 03:00 | Last updated: May 9 2008 03:00

US hedge funds are responding to the continuing uncertainty of the investment outlook by taking a cautious "wait and see" attitude, scaling back on big directional bets and sitting on large cash balances, according to investors.

The impact on the wider market of this relative lack of activity and "flight from risk" by hedge funds is raising concerns in some quarters.

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