The rich bail out of changing hedge fund industry

Rich private investors are turning their backs on hedge funds because moves to attract more conservative pension fund clients mean managers no longer deliver the big returns they crave.

The fastest growing source of new money for hedge funds is now pension funds and insurance companies who want managers to go easy on risky trades.

Funds are finding it hard to say no to the big money these investors offer so rich clients are feeling neglected.

SOURCE: Reuters.