Hedging Commitments

“WE AIM TO ACHIEVE an 8.5 percent return,” says John Myers, CEO of General Electric Asset Management.

“From our traditional investments, stocks and bonds, we assume we should be able to get 8 percent. The alternative investments put us over the top.”

Myers’s approach nicely sums up the allure of hedge funds. GE began investing in hedge funds in 1992 when it gave $50 million to Leon Cooperman’s fledgling Omega Advisors.

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