Making Do in a Zero-Interest-Rate World

A rise in short-term interest rates would be “good for the investor, but it shouldn’t be a free ride for managers.”

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A lot of investors are keeping a close eye on the Federal Reserve, but few are as eager to see a hike in short-term interest rates as U.S.-based market-neutral equity managers. “No one ever talks about the impact of short-term interest rates on market-neutral strategies,” says Jason Cross, global head of equity strategies at Minneapolis-based Whitebox Advisors, which manages about $4.2

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