have been aggressively moving into ... cash. A number of the
largest U.S. firms are holding cash balances or have markedly
decreased leverage in response to uncertainty about the
direction of markets—which may have helped them during
the extreme volatility in August.
Regiment Capital Management in Boston had 60% in cash in
July, according to investors, and Balestra Capital had built up
as much as 65% in cash around the same time. Meanwhile, King
Street Capital Management, which started 2011 with roughly 60%
of its $19.5 billion in cash, is slowly reducing its
"People are losing money, so managers...