Hedge Funds Adjust Their Trading Models

William Clark, director of the New Jersey Division of Investment, which manages state pension funds with about $3.7 billion in hedge funds, said he spent much of Friday talking to fund managers. "We're reaching out to them to make sure no one was in a strategy that relied heavily on shorting financials," he said. "You just have to hope that your hedge-fund investments are properly diversified."

And what would be wrong with that? Risky, perhaps, but I can't think of a strategy that has been more right over the last year.