Lincoln National Corp’s commercial real estate exposure has raised concerns among hedge funds, with Mill Hill Capital shorting the company’s credit and Saba Capital holding its credit default swaps.

The company’s CEO Ellen Cooper stated that the company aims to reduce leverage and increase capital.

Mill Hill’s Chief Investment Officer, David Meneret, speculates that CRE portfolio losses could lead to a rating drop, making it harder for the firm to attract and retain clients.

Lincoln’s credit risk is 238 basis points, down from 323 when Saba announced the position.

Lincoln’s bonds have rebounded since March’s financial turmoil.