HFR: Hedge Funds Wilt In July Heat

Jul 29 2008 | 9:14am ET

The bad news continues for the hedge fund industry, which may be facing its worst month in at least five years.

Through July 24, Hedge Fund Research’s Global Hedge Fund Index is off by 3.2%. If that figure holds, it will be the worst month in the history of the index, which goes back to 2003.

Pessimism seems to be the major culprit this month, as with much of the decline blamed on bad short bets, including those of troubled mortgage giants Fannie Mae and Freddie Mac. Short-interest on the two soared 28% and 11%, respectively, during the first two weeks of the months, Bloomberg News reports, as concerns about their financial health reached a fever pitch.

Instead, both stocks rose in the wake of the proposed government bailout, burning hedge funds that bet against them.

Bets against homebuilders and European car maker Volkswagen also backfired, as did bets that oil would continue to rise.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.