A loss of confidence among its shareholders has led Concord, a US-based electronic commerce provider, to liquidate its hedge fund investments.

The decision comes as hedge funds struggle to overcome a wave of adverse publicity and as doubts resurface among those not directly involved in the industry about the risks associated with hedge fund investing. Last month, ABP and PGGM, the two largest Dutch pension funds, stopped lending stock in the fear that it was feeding the speculative activities of hedge funds which was, in turn, contributing to market volatility.