Horizon wary of hedges.

Investment Adviser, August, 2005

Asset manager Horizon Financial Services is advising investment trusts to follow its lead in reducing exposure to hedge funds.

Jersey-based Horizon, which runs fund of fund portfolios, claims hedge fund managers will create problems for investment trusts and has called for trust managers to follow its lead in avoiding hedge fund money.

Horizon has reduced its 40 per cent position to multi-strategy hedge funds in its fund of funds conservative growth portfolio to 18 per cent over the last year. This resulted from increased concerns over the flood of managers wanting to run hedge funds, as well as more institutional investors investing into the hedge fund market.

David Francis, director for Horizon, said: "There are two principal reasons why we...

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