Some of the biggest names in the hedge fund industry took a pounding in May, the worst month for hedge funds in a year-and-a-half.
While the average hedge fund fell between 2% and 3%, according to most industry indices, Moore Capital Management’s flagship lost 9.2%. That wipes out Moore Global Investments’ year-to-date gains, leaving it down 6.4% on the year, according to The Wall Street Journal.
While Moore chief Louis Bacon’s pain was most acute—Moore did even worse than the Standard & Poor’s 500 Index, which lost less than 8% during the volatile month—he was not alone in suffering. Third Point dropped 5.6% on the month, although Daniel Loeb can console himself with the fact that his fund is up 12.6% on the year.
Not so John Paulson, whose Paulson & Co. fell 4.9% in the month to drag it into the red, down 1.3% through May.
SAC Capital Advisors also fell in May, losing a more representative 2.3% and remaining up 5% on the year.
According to the Journal, Bacon, who in April blasted European efforts to keep Greece from defaulting on its sovereign debt, has since changed his tune. Unusually, it was his own trades that made up the bulk of Moore’s losses in May.