It’s A Hedge Fund Hell
Seems like yesterday hedge funds were all the rage. Now, however, the industry is trying to deal with its worst returns since 1990. James Quinn of The Telegraph (UK) wrote yesterday:
The $2,000bn (£1,122bn) global hedge fund industry is experiencing its worst performance in 18 years as a result of the continued credit crisis and wider economic malaise.
The industry, which has until now prided itself on out-performing other money managers, has become one of the many victims of the general downturn affecting financial markets.
Hedge funds are experiencing the worst returns since 1990, the year that Hedge Fund Research began tracking performance, with the average fund down by 4.7pc on the year to August 28.
Well-known funds such as those managed by Atticus Capital, TPG-Axon, Citadel and Lone Pine Capital, are reported to be down between as much as 6pc and 25pc so far this year.
Yesterday, New York-based Ospraie Management LLC informed investors it will close its biggest hedge fund after losing 38.6 percent this year alone on bad commodity stock bets. The Ospraie Fund opened in 1999 and had $2.8 billion under management as of last month. After the blowup, Ospraie Management is left with three funds consisting of more than $4 billion of assets, which is down from $9 billion in March. Ospraie was once the largest commodity hedge fund firm.
Squirrel Nut Zippers, “Hell” (1996)
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Source:
“Hedge funds suffer worst returns for 18 years”
James Quinn
Telegraph (UK), September 9, 2008
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