Hedge funds are finding out it’s hard to be all things to all people, as they have been reducing their risk exposure in an attempt to appeal to conservative pension plans, yet disappointing other investors looking for astronomical returns, BusinessWeek reports.

Some finance experts are now saying that hedge funds are becoming too institutional and bureaucratic. “You have to take risks to produce market-beating returns. That’s what we pay people to do,” said Robert Discolo, head of hedge fund strategy at AIG Global Investment Group, where he runs a hedge fund-of-funds that invests in outside managers. “But a lot of managers are notching it down. I’m not happy about it.”

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