The long and short of the new 'hedge funds lite' JP Morgan and Goldman Sachs think they can boost returns with little extra risk by using hedge fund techniques. But experts are not so sure. Emma Simon reports

From: The Sunday Telegraph London | Date: June 17, 2007| Author: Emma Simon | Copyright information

A $50bn US industry is on its way over here. Last week JP Morgan became the latest fund manager in Britain to announce that it was launching a series of racy "130/30" funds.

These funds, which have proved popular in the States in recent years, promise private investors the benefits of a hedge fund without the associated risks. In fact most fund managers claim these funds are only slightly higher risk than a bog-standard blue chip equity fund.

JP Morgan is not the only fund manag...

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