Top Hedge Funds Having Gruesome October

Oct 28 2014 | 1:13pm ET

If there’s a prominent hedge-fund manager in your neighborhood, you may wish to steer clear of their doors on Friday: They’ve had enough frights this October already.

This month has not been kind to some of the biggest names in the industry, with the likes of Brevan Howard Asset Management, Fortress Investment Group, Pershing Square Capital Management, Tudor Investment Corp. and York Capital Management all suffering losses, some of them sizeable. Most notably, global macro funds—which posted big gains in September, marking a turnaround from a brutal first eight months—returned to their losing ways.

None more so that Discovery Capital Management, whose $15 billion flagship dropped 11.2% in the first half of October, more than doubling its year-to-date decline. Both Tudor and Brevan Howard’s macro strategies shed about 3% in the first two weeks of the month, putting the latter back in the red for the year after it managed to climb out of it in September.

Graham Capital Management’s $800 million Proprietary Matrix Fund is down 5% this month, erasing its year-to-date gains. A levered version of the same strategy shed 10%. Rubicon Fund Management’s Global Fund is also down 5% this month. Moore Capital Management shed 1.43% in the first week of October, increasing its year-to-date decline to 5.38%.

It isn’t only global macro managers struggling: Owl Creek Asset Management shed 9.1% through Oct. 17 and is now down 12.9% on the year. Tyrus Capital took a big hit from AbbVie’s abandonment of its planned acquisition of Shire, falling 10%. York is down 6.6% through Oct. 17, cutting its year-to-date gains to just 1.3%. Even high-flying Pershing Square has slowed in October, falling 0.9% through Oct. 21. On the bright side, the fund was down 4% on the month just a week earlier, and remains up over 30% on the year.

Of course, not all hedge funds are dying for the month to end—not even all global macro funds. SECOR Asset Management added to its 2014 gains this month, rising 4% through Oct. 17 (it’s up 11.5% year-to-date). Omni Partners’ Macro Fund is up about 2% on the month, and GLG Partners’ Macro Fund has returned 0.7%, although it remains down 10.4% on the year.


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