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Hedge Fund Woes Can't Diminish Banner Year for Long-Short Trades

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Investors are finally warming up to an equity strategy that’s been lagging for the last six years. Long-short hedge funds, which place bullish and bearish wagers on individual stocks, are on track to top the Standard & Poor’s 500 Index for the first time since the 2008 financial crisis, according to an index by Credit Suisse Group AG. While the S&P 500 has struggled to hang onto its gains all year, long-short fund managers were able to differentiate by wagering on winning industry groups within technology, according to Mark Connors, Credit Suisse’s global head of risk advisory. This year’s...

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