Weakness in financial names is taking its toll on convertible arbitrage hedge funds.

Preferred shares of financial services firms are were down 21% in the first half of July, contributing the suffering already felt by convertible-bond funds—down an average of 7.6% in the first half, according to Hedge Fund Research—this year.

New York-based Fore Research & Management, led by former TD Securities convertible arbitrage chief Matthew Li, saw its convertible-bond fund fall 12.4% through July 22, leaving it down 8% on the year, Bloomberg News reports. The $2.5 billion firm’s convertible-bond fund has averaged an 11% return since inception.

Other convertible-bond funds are doing no better. Westport, Conn.-based Lydian Asset Management’s Overseas Partners Fund is down about 10% through July 17, Bloomberg reports. London-based Ferox Capital Management’s flagship is down 12% through July 18.