Hedge Funds Down 4% In August, Big Names Hit Hard

Aug 29 2011 | 1:43pm ET

August isn't quite over yet, but when it is, it will almost certainly go down as one of the worst months in hedge fund history.

The average hedge fund is down 4.1% this month, according to Hedge Fund Research. That means that, barring a remarkable rally between today and Wednesday, August will be the worst month since the collapse of Lehman Brothers and one of the five worst months since 1990.

Stock managers have been hardest hit, losing an average of 6.9%, HFR said. The declines have burned some of the industry's biggest names, among them Paulson & Co., one of whose funds was down almost 22% through the first three weeks of the month.

Few, if any, hedge funds have matched that precipitous drop. But many are nursing big losses of their own, including Owl Creek Asset Management, Perry Capital and York Capital Management, the Financial Times reports.

Others suffering include Highbridge Capital Management's long/short equity strategy, down 9.2%, Cantillon Capital's Global fund, down 6.25%, and Viking Global Investors, down 4%.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...