Long/Short Suffering Across The Pond

Aug 23 2007 | 1:24am ET

The hedge fund bloodbath triggered by the collapse of the U.S. sub-prime mortgage market is being keenly felt on the other side of the Atlantic, especially in the all-important long/short equity strategy.

Eighteen of 20 major European long/short funds were down through Aug. 10, according to Financial News. During the same period, a slew of major U.S. quantitative hedge funds, including funds run by Renaissance Technologies, Goldman Sachs, AQR Capital Management and Tykhe Capital, reported big losses, as well.

Long/short funds run by Phylon Investment Advisers and Odey Asset Management were the lucky ones in the first 10 days of August: They returned 2.54% and 1.15%, respectively.

As for the losers, they ranged from down performance of 0.7% for Cazenove Capital Management’s fund to 6.12% for Charlemagne Capital. Other notable losers include GLG Partners (4.4%) and Lansdowne Partners (1.74%).

Meanwhile, back in the New World, Long Island, N.Y.-based Renaissance Technologies has staged a remarkable August comeback from a dismal start to the month. Down 8.7% for the month through Aug. 10, the firm’s Renaissance Institutional Equities Fund is now just 1.35% in the red, Reuters reports.


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