Cash by nature

Many hedge funds remain underinvested with relatively high cash positions, despite reducing cash holdings as uncertainty over Iraq diminished, according to a survey of hedge fund managers by Hedge Funds Review.

Cedric van Rijckevorsel, a portfolio manager with 3A Asset Management, says such a position may become untenable for hedge fund firms given cash's low returns of 1% in the US and 3.5%, recently lowered, in the UK.

The war in Iraq had boosted cash positions in many hedge funds earlier this

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