Closure for flagship PAI hedge fund

Pioneer Alternative Investments (PAI) is to close one of its flagship single-strategy hedge funds at the end of March. Even though the e153m fund is intended to have a conservative risk approach, it has under- performed the CSFB Tremont hedge fund equity market neutral index since autumn 2003. The closure of the fund has been attributed by PAI to difficult market conditions. A statement said: "A combination of low inflation, low interest rates and limited volatility has produced a difficult backdrop for fixed income arbitrage related strategies. Acceptable returns in the future may only ...