FX Week

Hedge Fund Trends Unlikely to Help FX Liquidity as Investors Flee Macros

NEWS

LONDON--Recent trends in hedge fund investment are unlikely to help liquidity in currency markets, despite an overall quadrupling of hedge fund assets in the past six years, say currency market analysts.

They were commenting on figures released by London-based Tass Investment Research last week showing that the assets of 2,200 hedge funds tracked by Tass had increased to $205 billion by June this year from $50 billion in early 1994.

However, the overall increase masks a shift by investors away