Financial Times FT.com

New cloud on horizon for hedge funds

By James Mackintosh

Published: April 3 2008 22:20 | Last updated: April 3 2008 22:20

Hedge funds are still reeling after banks unexpectedly pulled credit lines and demanded more security against loans, forcing firesales and heavy losses.

Now they face a new threat: investors are abandoning them, raising the risk that the funds will have to sell assets at any price to raise the cash to meet withdrawals.

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