LONDON (Reuters) – Investors fed up with losses from their mainstream hedge fund holdings are eyeing some exotic alternatives.

How exotic? How about portfolios betting on Chinese companies embroiled in fraud probes? Or funds looking to arbitrage prices in the electricity market?

LONDON (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.

MONACO (Reuters) – Tucked into corners of Monaco’s plush Meridien hotel and on lonely tables in sun-kissed bars overlooking the Mediterranean, anxious hedge fund managers contemplate the next six months that could make or break their careers.

Behind the glitz of the annual hedge fund shindig, the 500 or so financiers who made the trip privately confess their struggle to find winning strategies given unpredictable markets, fretting clients will lose faith and snatch back their money.

MONACO, June 20 (Reuters) – Euro zone turmoil has turned
Europe’s hedge fund managers into shadows of their former
selves: haunted by ghosts of failed bets and as deeply divided
on the fate of the indebted union as the leaders responsible for
keeping it afloat.

The community of financiers, the so-called ‘masters of the
universe’ considered able to make fortunes in all economic
conditions, are no longer dictating markets but are nervously
eyeing trades which could win or lose on a politician’s whim.

MONACO (Reuters) – The global financial crisis has barely started and is likely to last for at least another 15 to 20 years as major economies cut debt levels, according to Jamil Baz, one of Europe’s most prominent hedge fund managers.

Baz, chief investment strategist at GLG Partners, told the GAIM 2012 conference in Monaco that total debt levels in a number of major economies had actually risen since 2007 and had much further to fall before reaching “a semblance of equilibrium”.

MONACO, June 19 (Reuters) – The global financial crisis has
barely started and is likely to last for at least another 15 to
20 years as major economies cut debt levels, according to Jamil
Baz, one of Europe’s most prominent hedge fund managers.

Baz, chief investment strategist at GLG Partners, told the
GAIM 2012 conference in Monaco that total debt levels in a
number of major economies had actually risen since 2007 and had
much further to fall before reaching “a semblance of
equilibrium”.

MONACO, June 19 (Reuters) – The global financial crisis has
barely started and is likely to last for at least another 15 to
20 years as major economies cut debt levels, according to Jamil
Baz, one of Europe’s most prominent hedge fund managers.

Baz, chief investment strategist at GLG Partners, told the
GAIM 2012 conference in Monaco that total debt levels in a
number of major economies had actually risen since 2007 and had
much further to fall before reaching “a semblance of
equilibrium”.

MONACO/LONDON (Reuters) – Embattled hedge fund firm Man Group Plc dropped its finance chief on Monday in its latest management reshuffle designed to regain investor confidence and reverse poor performance at the flagship AHL fund.

Man said Kevin Hayes was leaving immediately and would be replaced by Jonathan Sorrell, son of WPP Plc chief Martin Sorrell and formerly Man’s head of strategy and corporate finance.

MONACO (Reuters) – Three days in sun-soaked Monaco won’t be enough to stir hedge fund managers from their downbeat mood, made worse by a euro zone crisis that has prompted much soul-searching about the industry’s future after years of lackluster returns.

Restaurateurs, bartenders and hoteliers getting ready to welcome an army of high-rolling financiers to this year’s GAIM Conference in the Mediterranean principality could find money and mirth in short supply as recent poor performance weighs.

LONDON, June 13 (Reuters) – Fund firm Polar Capital
posted higher profits after its strongly-performing funds
attracted more than $1 billion of net client cash over the past
year, and its CEO pointed to further inflows despite investor
caution over the euro zone debt crisis.

The London-based firm, which has been winning clients to its
mutual funds at a far greater rate than investors have exited
its hedge funds, said pretax profit for the year to end-March
rose 5 percent to 9.6 million pounds ($14.9 million), roughly in
line with analyst forecasts.