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Friday Aug 29 2008
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Hedge funds: (Some) losers become winners
While it is still too early for hedge-fund honchos to celebrate, the biggest winners so far this year are some of the funds that had the biggest losses over the brutal summer of 2007, reports the WSJ. Last summer, losses by some quantitative funds, which rely on computer models, forced them to do some selling, which in turn put pressure on hedge funds making similar investments. Now, the rebounds could signal that the managers may be making headway, as they tweak the computer-driven models that had let them down.
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