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Market Scramble: Stock-picking key to reviving hedge funds

TOKYO -- Sharp-eyed expert stock selection has grown all the more critical for actively managed funds facing headwinds and turning in disappointing returns.

Companies doing most of their business in Japan were hit hard Friday, with dairy food producer Meiji Holdings losing 3% and telecommunications behemoth Nippon Telegraph and Telephone slipping 2%. These domestic-demand stocks have been targeted by prominent selling since July.

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