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CORRECTED-UPDATE 1-Some smaller hedge funds outshine their bigger rivals

* Some smaller funds post double-digit gains as some bigger funds lag

UPDATE 1-State Street settlement talks advance with pension fund

BOSTON, Aug 3 - State Street Corp's settlement talks with an Arkansas pension fund over foreign currency trades have advanced to another level after both sides agreed to meet with a mediator, court records show.

State Street FX settlement talks advance with Arkansas pension

BOSTON, Aug 3 - State Street Corp and an Arkansas pension fund that accuses the bank of overcharging on foreign currency trades will meet with a mediator to discuss the dispute, court records show.

Policy meeting suspense spurs flight to bonds-EPFR

NEW YORK, Aug 3 - Lower risk U.S. bond funds once again reigned supreme on growing concerns over policy actions, or lack thereof, to bolster faltering economies, data from EPFR Global showed on Friday.

UPDATE 1-Some smaller hedge funds outshine their bigger rivals

* Some smaller funds post double-digit gains as some bigger funds lag

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Wall Street sees Knight as software risk wake-up call

- Wall Street banks and brokers are poring over their trading systems and rethinking the way they test software to make sure they don't become the next Knight Capital Group, the trading firm whose survival was imperiled by a software glitch on Wednesday.

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Funds News

Some smaller hedge funds outshine their bigger rivals

BOSTON, Aug 3 - A number of hedge fund industry spin-outs are showing up their bigger and better-known brethren by delivering eye-popping returns in a year marked mainly by lackluster performance.

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