Some Big Investors Are Stockpiling Cash to Prepare for Whatever Comes Next

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The past few weeks have been a brutal time for hedge fund managers — whom many regard as some of the savviest investors, and certainly the best paid, in the markets. For the most part, they’ve done their job by protecting wealthy investors and pension funds from the worst of the stock market sell-off. Now they’re trying to figure out how to make money again. The sophisticated trading strategies that hedge funds use to pare their losses in times of wild market swings were successful: As of Wednesday, the average hedge fund was down about 9 percent this year, according to Hedge Fund Research, a data firm. That was far better than the S&P 500, which has lost about a quarter of its value as the coronavirus has ground large parts of the global economy to a halt.

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