British hedge fund SRM Global, headed by a former star trader for UBS, has declined by almost half in the past three months, investors say.
The once US$3 billion fund ended last year down 28%, with most of the losses coming in November and December, the Financial Times reports. Last month, it fell a further 23%, after having been down by 30% at one point.
The fund, managed by Jon Wood, boasts a “high conviction” portfolio, with a small number of very large positions. It also boasts long lockup provisions, meaning that it is in no danger of facing redemptions from angry investors for more than a year.