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Article: Hedge-fund envy; Mutual funds.(Unit trusts emulate hedge funds)
- Article from:
- The Economist (US)
- Article date:
- March 17, 2007
CopyrightCOPYRIGHT 2007 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mutual funds borrow a few ideas from hedge funds
MUTUAL funds are the familiar, unexciting face of stockmarket capitalism, the financial product of choice for millions of investors. But a growing number of mutual-fund managers, including some old hands, are now borrowing investment strategies from the smaller, younger and sharper world of hedge funds.
Even the names of their products are being spiced up: Global Alpha Edge, a new fund offered by State Street Global Advisors sounds like it was dreamt up by a hedge fund. In fact, it is a mutual fund employing a "130/30 strategy" (a blend of long and short positions, betting that certain stocks will rise and ...