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Currently, Man's so-called fund of funds, which invests across a portfolio of hedge funds, manages about $11 billion.
"I don't want to sound pompous or anything when I say what my abilities are, but I've done reasonably well in handling financial situations, of being a fiduciary," said Mr. Bent, who helped invent the first money-market mutual fund and whose company, The Reserve Funds, manages investments worth $10 billion.
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The majority of the $120 million raised is from funds managed by Waddell & Reed Financial, an investment management company based in Overland Park, Kan.
Some of the funds managed by Janus, another big, aggressive American fund manager, have lost anything up to 30%.
A decade ago hedge funds managed $257 billion.
For pension funds manage huge sums on Britons' behalf.
In 1949, mutual funds managed assets of $2 billion.
Other funds managed by Andor have also done poorly.
Hedge funds and private equity funds manage money for wealthy individuals and institutions like pension funds.
Today the world has more than 8,000 hedge funds, managing more than $1 trillion (see chart).
The real threat is to smaller operators—half of all hedge funds manage less than $100m.
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