The bigger they are, the harder they fall. Or something to that extent.

FrontPoint Partner’s $378.5 million Relative Value Opportunities Fund, a fixed-income arbitrage strategy, has been feeling the pinch since the beginning of the year. The fund began its first three months of trading down about 22%, but has recovered some of its losses in recent months to the tune of some 7.6%, according to public databases.

Still, the fund’s performance has fallen in line with those of its competitors dropping 16.09% through June. The Hennessee Arbitrage/Event Driven Index declined 1.48% in July (down 2.26% YTD), with most hedge fund managers hurt by widening Treasuries spreads.

The Relative Value Fund invests in securities and derivatives primarily in the global fixed income and currency markets. It began trading in January 2002 and is benchmarked against the Lehman Brothers Aggregate Bond Index.

FrontPoint manages some $9.4 billion in assets.