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Christopher Langner

Hedge Funds' Win-or-Die Bet

Offering to cover investors' losses is an attractive marketing strategy, but a threat to firms' survival.

It had already become one and 20. Now, you can invest in some Asian hedge funds for zero fees upfront and they'll cover any initial losses. 

The institutional asset management industry saw net outflows of $167.1 billion in the fourth quarter, according to hedge fund tracker eVestment. That's prompted some contemplation and even penance in the industry, with a number of shops, especially new ones, abandoning traditional fee structures.