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Gulf becomes source of alpha as well as liquidity

Hedge funds are using derivatives and synthetic products to circumvent hedging bans

It wasn’t so long ago that the only interest hedge funds had in the Gulf was as a source of mandates. If they had offices in the region, they were staffed almost exclusively by sales people.

Most simply flew in for a couple of days with a few introductions, a plausible manner, compelling arguments about the diversification benefits of their products and a couple of lightweight suits.

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