Hedge Funds

Hedge funds score big gains

After several lacklustre years, money managers are raking in profits, fuelled in part by booming mergers and acquisitions

John Paulson
John Paulson Photo: Getty Images

Some of Wall Street’s biggest investors are outrunning markets for the first time in years, riding gains from bets on instability in Europe and a wave of mergers.

Markets the world over have been muddled in recent months by political tensions surrounding Greece and reservations about the Federal Reserve's expected interest-rate increase. The uncertainty has crimped results for investors large and small who piled en masse in recent years into exchange-traded funds that hug closely to now-languishing stock and bond indexes.

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