August HF Returns Look Bleak

Date: Wednesday, August 29, 2007
Author: Hedge Fund Daily

Three days to go before the end of the August, and already the hedge fund industry is bracing for its first downer of the year. “This month looks pretty grim,” Christopher Holt of Holt Capital Advisors told Reuters. One unnamed HF investor added, “These days everyone is hearing managers complain that they are losing money on the long side and that they are losing money on the short side. So the bottom line is that this is going to be a pretty bad month.” So far, as of Aug. 22, the average global hedge fund has sunk 3.73%, according to Hedge Fund Research figures, which could lower the average HF year-to-date gains to around 4%, after a flat July. Hardest hit among the strategies is global macro, which HFR says plunged 9.36% so far this month. Among some big-name funds that are negative for the month so far are: Tudor Investments’ Raptor Fund (-5.5% as of Aug. 24) and Tudor BVI Global Fund (-6% as of Aug. 22); D.E Shaw’s Composite International Fund (-7% as of Aug. 17), Cantillon Capital Management’s Pacific Fund (-9% as of Aug.  17) Citadel Investment Group’s Wellington Fund (-3% as of Aug 22). SAC Capital Partners’ multistrategy fund was down -6% but remains up +6% for the year, says Reuters, citing an investor