Highbridge Capital Management, the giant JPMorgan Chase-owned hedge fund, is not having a good year.
At least three of the firm’s funds posted double-digit losses during a disastrous October, according to e-mails to investors obtained by Wall Street blog Dealbreaker.com. The firm’s Convertible Arbitrage Fund plummeted 23.75% last month, leaving it down 37.33% on the year. Also posting big losses are the Asia Opportunities Fund, which lost 14.79% in October (down 32.44% YTD) and Highbridge Capital Corp.’s New Issue Restricted share classes, which fell 12.77% on the month (down 25.34% YTD).
The firm’s losses are due—as the catastrophic drawdown in its convertible arbitrage fund indicate—in no small part to big declines in convertible bond holdings. Highbridge said in at least one e-mail that its October letters will be posted on its Web site shortly.
Not all Highbridge investors are suffering this year. The Statistical Opportunities Fund’s Class A & C actually adding 2.51% in October, and is up 10.61% on the year.
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