The Summer Heat Is On For The Hedge Funds

Hedge funds are skittish as a traditionally quiet and low volume market looms this summer.

Fund managers are scratching their heads to dream up ways and means to bolster returns over this period, and at the back of their minds is last year’s August stock shakeout.

The key problem, and no prizes for guessing, is the European debt crisis that appears to be interminably in a no-man’s land as far as a lasting solution is concerned. Markets careen between optimism and despondency, depending on whom in Europe has made the last statement on...