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22Jun/12Off

Investors cast doubt on “end of world” hedge strategies

Investors cast doubt on "end of world" hedge strategies

An office worker talks on his phone as he looks the stock board at the Australian Securities Exchange (ASX) building in central Sydney June 15, 2012. REUTERS/Daniel Munoz

LONDON | Fri Jun 22, 2012 4:24am EDT

(Reuters) - Hedge fund investors have voiced their concerns about complex funds designed to protect against major market meltdowns, just as fears of a break-up of the euro-zone have spurred huge interest in these products.

So-called "tail risk" funds, also known as "black swan" strategies after the popular book by Nassim Nicholas Taleb, are supposed to hedge against rare but dangerous events, such as the market sell-off following Lehman Brothers' demise.

http://www.reuters.com/article/2012/06/22/uk-hedgefunds-gaim-tail-idUSLNE85L00920120622

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