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Tate pulls out of hedge funds

THE trustees of the Tate Gallery have withdrawn from hedge funds after losing £1m on investments.

Accounts show that the trust held £6m of its £27m investments in fund of hedge funds at the start of its last financial year.

But by March 2009 the gallery had liquidated its entire hedge fund holdings – with a 17 per cent loss.

That was equivalent to a £1m drop in value.

A Tate spokesman said the trustees who include hedge fund expert Noam Gottesman, former fund manager Carol Galley and former Goldman Sachs investor Scott Mead, believed "the risk/return on hedge funds looked less interesting than in other assets".