Second Quarter Pain For Top Hedge Funds

Aug 9 2012 | 1:45pm ET

The second quarter wasn’t kind to some of the most prominent hedge funds in the U.S.

Elliott Management, Baupost Group and York Capital all disappointed during the period. Elliott lamented a “frustrating quarter” which saw its flagship hedge fund fall 0.5%, and Baupost marveled at the “strange world we inhabit.”

That world is “one where economies remain extremely depressed yet almost no companies go bankrupt, while low interest rates encourage holders of capital to speculate,” Baupost wrote. “One where global turmoil mounts while the world passively watches.”

“It would be absurdly funny if it weren’t so incredibly tragic,” it concluded. Baupost’s returns aren’t tragic, simply “nothing to write home about,” with its year-to-date return cut to 1.39%.

Elliott’s first-half return shrank to 4.6%. “Intense price action reportedly forced some firms to unwind trades, further exacerbating underlying price movements,” the firm wrote.

York Capital Management is also lagging the broader markets, with its flagship up between 3.11% and 3.62% on the year. Its event-driven funds are doing much worse, down between 4.47% and 6.46%.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…