European Hedge Funds Hit Hard By August Rout

Aug 19 2011 | 4:48am ET

Hedge funds' August woes—like August's stock market and other economic woes—are a transatlantic problem.

Several notable European hedge funds have put up the kind of losses seen in America by Paulson & Co., Maverick Capital Management and Pershing Square Capital Management—and some are suffering even worse months.

Henderson Global Investors, for one: It's European Absolute Return Fund plummeted 15.64% during the first five days of August, Financial News reports. The news for that fund's investors get worse, however, as the August rout has the vehicle down a Paulson-like 32.46% on the year.

London-based Horseman Capital isn't doing much better. Its flagship Global Fund shed 13.51% through Aug. 10, erasing its year-to-date gains and leaving it down 5.74% in 2011.

Ridley Park Capital and Egerton Capital also took very big, very early August hits. The former's Paragon Fund lost 7.85% through Aug. 5 and the latter's European Fund dropped 4.59% through the same day. Ridley Park's fund is now down an ugly 25.44% on the year; Egerton's is down 5.3%.

Industry giant Lansdowne Partners has a whole suite of headaches this month. Through Aug. 12, its U.K. Equity Fund is down 4.3% (down 15.8% year-to-date), its European Equity Fund is down 3.6% (down 9.4% YTD) and its Global Financials Fund is down 3.6% (down 12.5% YTD).

Fellow European heavyweight Marshall Wace Asset Management, by contrast, is having a splendid August. The firm's MW Global Opportunities Fund is up 7.36% through Tuesday, and 13.06% on the year.


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