Friday, 31 October 2014
Last updated 15 hours ago
Sep 10 2007 | 1:43pm ET
The first two weeks of August were awful to hedge funds. The rest of the month, as it turns out, wasn’t much better.
Hedge funds fell 1.31% last month, according to Hedge Fund Research, their worst monthly performance in more than a year, and this first month in the red in 2007. Separately, the Hennessee Group reported that hedge funds fell 0.7% on the month. On the bright side, it noted that hedge funds remain up 8.3% year-to-date.
"Hedge fund performance volatility increased at the end of July and has persisted into September," Kenneth Heinz, president of HFR, said. His numbers show emerging markets funds, a top performer in 2007, pacing August losses with a 2.5% decline, followed by macro funds with a 2% drop and high-yield falling 1.97%.
The volatile equities market and continued credit market problems plagued an all-star list of hedge funds last month. In fact, the only funds that seemed to enjoy a modicum of success in August were the quantitative funds that suffered the most in its opening days.
Tudor Investment Corp.’s $6 billion BVI Global Fund fell 5.5% last month and is down 1.5% year to date. The Greenwich, Conn.-based firm’s $6 billion Raptor Fund also dropped 5.6% in August, and is down 9% year-to-date, the Financial Times reports.
Other big losers include Caxton Associates, whose $11 billion flagship shed 4.8% last month and is down 1.5% in 2007. Tewskbury Capital Management’s $3 billion fund fell 8% and is flat year-to-date.
Moore Capital’s $7 billion Global Fund dropped 5.7% on the month, while its Fixed Income Fund fell 4.3%. According to the FT, both remain in the black year-to-date. The same is true of Atticus Capital’s flagship funds, in spite of double-digit declines in both during August. Fellow New York-based activist Third Point fell 8% last month, though it too remains in positive ground year-to-date. Stamford, Conn.-based SAC Capital Advisors’ International Fund dropped 3% on the month, but is up 10% year-to-date.
And not all quants rebounded from the early August bloodbath. New York-based Tykhe Capital’s statistical arbitrage fund—dubbed “Class B”—was down 18% in August, bringing its year-to-date loss to 21%. Its global equities fund, “Class C”, was even worse, dropping 26% in August, leaving it down 25.8% year-to-date.
Across the pond, some big British names were also hurting, including Lansdowne Partners, GLG Partners and Sloane Robinson.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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