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JP Morgan exec flags hedge fund crowding, concentration, and leverage risks
Summary by Hedgeweek
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JP Morgan exec flags hedge fund crowding, concentration, and leverage risks
Michael Cembalest, chairman of market and investment strategy at JP Morgan Asset Management, has highlighted several “warning signs” in the hedge fund sector, despite strong overall performance this year, according to a report by Institutional investor. Cembalest noted that hedge funds are showing record levels of crowding, concentration, and high-beta exposure, with leverage rising sharply in some strategies. He cited Goldman Sachs research sho…
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