(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?
At this week’s GAIM hedge fund conference in Monaco, investors were shaking their heads about where to generate returns, with many viewing so-called safe havens such as German Bunds and U.S. Treasuries as overvalued while equities look too volatile.