ABN Private Banking Goes Overweight On Hedge Funds

Jun 20 2012 | 11:40am ET

ABN Amro is pouring more of its clients' money into hedge funds as it seeks to profit from high market volatility.

The firm's private banking business has increased its hedge fund allocation from neutral to overweight, Bloomberg News reports. ABN manages some €164 billion (US$207 million) on behalf of clients.

"Hedge funds are in a stronger position to extract value and preserve capital than constrained 'long-only' investments in bonds and equities," Didier Duret, ABN Amro Private Banking's chief investment officer, told Bloomberg. "Global macro hedge funds can better preserve capital and make money when financial markets ignore fundamentals and are more driven by macroeconomic and policy risks."

ABN remains neutral on stocks.

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