Elliott, Pershing Square, Third Point Nurse May Losses

Jun 7 2012 | 1:11pm ET

May was a grim month for the stock market, the hedge fund industry, and most of that industry's most prominent players.

Elliott Management, Pershing Square Capital Management, Third Point and T2 Partners all posted losses last month, some more sizeable than others. While Elliott's International Fund and Third Point's Offshore Fund both managed to do better than the Standard & Poor's 500 Index on the month, the others were less lucky.

Whitney Tilson's T2 Partners fell 13.6% on the month and Pershing Square 7%. Despite the big drops, both hedge funds remain in positive ground for the year; Pershing Square had been up 10.2% through April. Abundance Partners and Paulson & Co.'s Gold Fund were not so lucky, with the former dropping 13.6% (down 21.19% year-to-date) and the latter 12.7% (down 22.5% YTD).

Third Point Offshore, by contrast, lost just 2.6% and Elliott International 1.4%. The former remains up 3.7% on the year and the latter 3.1%. Kingdon Capital lost 4.5% on the month but remains up 6.6% on the year. And Paulson's other funds posted mixed-to-positive returns.

While the average hedge fund took a beating in May, some big names managed big returns. Saba Capital Management's tail risk fund rose 20% in a month that saw it profit handsomely from JPMorgan's trading pain. Pine River Capital Management added 10.8%, Quantitative Investment Management's Global Fund rose 7.2% (8% YTD) and its Tactical Aggressive Fund rose 5.9% (3.9% YTD), while last year's top performer, Tiger Global Management, which returned 45% in 2011, rose 2.5% in May.

In addition, Passport Capital is up 20% though May.


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Editor's Note