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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of