对冲基金损失惨重！# Stock
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对冲基金经历2011年来最大损失
Misery Widespread at Hedge Funds
Market Turmoil Inflicts Losses in Industry’s Worst Period Since 2011
This month’s turmoil in financial markets has been a “bloodbath” for
hedge funds, inflicting large losses at an array of multibillion-dollar
firms in the industry’s worst stretch since late 2011.
It isn’t unusual for one segment of the $2.8 trillion hedge-fund world to
find itself caught in a downdraft. But in October, the pain has been
widespread.
There were casualties among funds that make bets based on their fundamental
analysis of companies, events like takeovers and broad economic trends. The
losses came amid sharp volatility in stocks, bonds, currencies and
commodities.
Top firms including Jana Partners LLC, Discovery Capital Management LLC and
Paulson & Co. have posted losses ranging from 5% to 11% for the month,
according One hedge-fund manager told clients Monday that market activity
reminded him of a “familiar plotline” from the “Jaws” movies. “An
idyllic investment environment amid an improving economy…and then cue the
music…dun-dun…dun-dun…dun-dun,” Paul Westhead, chief executive of $4
billion fund Rimrock Capital Management LLC, wrote in a letter to investors.
Some investors say that Thursday and Friday, when some of the stocks that
were slammed earlier in the week rebounded, have helped funds, though many
remain in the red.
The month has been marked by several popular trades turning sour. Shares of
Fannie Mae FNMA +5.09% and Freddie Mac FMCC +1.45% were hammered after the
market closed on Sept. 30 when a federal-court ruling went against investors
contesting the U.S. government’s decision to take all the profits from the
mortgage-finance giants rather than collect set dividend payments. The
unexpected collapse of AbbVie Inc. ABBV +1.27% ’s $54 billion agreement to
buy Shire SHP.LN +1.28% PLC triggered a selloff of stocks involved in
cross-border mergers.
Fresh concerns about economic strength in China and Europe also were big
factors in the markets this month.
“The assumption underlying a lot of trades is a global growth story,” said
Jane Buchan, chief executive officer of hedge-fund investor Pacific
Alternative Asset Management Co., saying many U.S.-based funds had
overlooked the weakness in Asia and Europe amid a domestic recovery.
Discovery, based in South Norwalk, Conn., was down about 10% for the month,
according to an investor. Discovery’s performance is frequently volatile,
and recent losses compound losses it took earlier in the year, when
previously highflying Internet, social-media and biotechnology companies
sold off.
Paulson’s Advantage Fund, which owned Shire shares, was down nearly 11% for
October through last Tuesday, bringing the $21 billion firm’s losses in
that fund for the year to nearly 22%, according to data from Lyxor, the
wealth-management arm of Société Générale SA that invests client money
in hedge funds. That was before Shire fell 30% on Wednesday in New York.
On an investor call Friday, founder John Paulson said he believed losses on
Shire could be regained in the next few months.
Mr. Paulson also wrote to clients Friday saying the New York-based fund,
which bets on mergers, has the right wagers for the current environment and
will seek to continue to play consolidation in the oil, telecommunications,
health-care and cable industries.
Jana, the $11 billion activist firm, lost about 5% in its flagship fund for
October through Monday, hurt in part by its investments in the energy sector
, according to people familiar with the matter. Jana, which typically pushes
for changes at the companies it targets, is down less for the year. One of
its oil-related holdings, Civeo Corp., CVEO -0.66% lost half its value on
Sept. 29 after the company disclosed its board opted not to convert into a
real-estate investment trust, a change investors including Jana and
Greenlight Capital Inc., had urged.
Jana increased the size of some of its holdings on the dips last week,
including in energy stocks and Walgreen Co., WAG -0.12% according to an
investor and a regulatory filing.
Millennium Management LLC, a $24 billion firm based in New York, saw losses
trip some of the firm’s internal loss limits as major takeover deals like
Shire hit headwinds.
Millennium is known for having a tight leash on its traders and in this case
cut off several of its portfolio managers from trading further because of
losses, a person familiar with the firm said.
★ 发自iPhone App: ChineseWeb 8.7
Misery Widespread at Hedge Funds
Market Turmoil Inflicts Losses in Industry’s Worst Period Since 2011
This month’s turmoil in financial markets has been a “bloodbath” for
hedge funds, inflicting large losses at an array of multibillion-dollar
firms in the industry’s worst stretch since late 2011.
It isn’t unusual for one segment of the $2.8 trillion hedge-fund world to
find itself caught in a downdraft. But in October, the pain has been
widespread.
There were casualties among funds that make bets based on their fundamental
analysis of companies, events like takeovers and broad economic trends. The
losses came amid sharp volatility in stocks, bonds, currencies and
commodities.
Top firms including Jana Partners LLC, Discovery Capital Management LLC and
Paulson & Co. have posted losses ranging from 5% to 11% for the month,
according One hedge-fund manager told clients Monday that market activity
reminded him of a “familiar plotline” from the “Jaws” movies. “An
idyllic investment environment amid an improving economy…and then cue the
music…dun-dun…dun-dun…dun-dun,” Paul Westhead, chief executive of $4
billion fund Rimrock Capital Management LLC, wrote in a letter to investors.
Some investors say that Thursday and Friday, when some of the stocks that
were slammed earlier in the week rebounded, have helped funds, though many
remain in the red.
The month has been marked by several popular trades turning sour. Shares of
Fannie Mae FNMA +5.09% and Freddie Mac FMCC +1.45% were hammered after the
market closed on Sept. 30 when a federal-court ruling went against investors
contesting the U.S. government’s decision to take all the profits from the
mortgage-finance giants rather than collect set dividend payments. The
unexpected collapse of AbbVie Inc. ABBV +1.27% ’s $54 billion agreement to
buy Shire SHP.LN +1.28% PLC triggered a selloff of stocks involved in
cross-border mergers.
Fresh concerns about economic strength in China and Europe also were big
factors in the markets this month.
“The assumption underlying a lot of trades is a global growth story,” said
Jane Buchan, chief executive officer of hedge-fund investor Pacific
Alternative Asset Management Co., saying many U.S.-based funds had
overlooked the weakness in Asia and Europe amid a domestic recovery.
Discovery, based in South Norwalk, Conn., was down about 10% for the month,
according to an investor. Discovery’s performance is frequently volatile,
and recent losses compound losses it took earlier in the year, when
previously highflying Internet, social-media and biotechnology companies
sold off.
Paulson’s Advantage Fund, which owned Shire shares, was down nearly 11% for
October through last Tuesday, bringing the $21 billion firm’s losses in
that fund for the year to nearly 22%, according to data from Lyxor, the
wealth-management arm of Société Générale SA that invests client money
in hedge funds. That was before Shire fell 30% on Wednesday in New York.
On an investor call Friday, founder John Paulson said he believed losses on
Shire could be regained in the next few months.
Mr. Paulson also wrote to clients Friday saying the New York-based fund,
which bets on mergers, has the right wagers for the current environment and
will seek to continue to play consolidation in the oil, telecommunications,
health-care and cable industries.
Jana, the $11 billion activist firm, lost about 5% in its flagship fund for
October through Monday, hurt in part by its investments in the energy sector
, according to people familiar with the matter. Jana, which typically pushes
for changes at the companies it targets, is down less for the year. One of
its oil-related holdings, Civeo Corp., CVEO -0.66% lost half its value on
Sept. 29 after the company disclosed its board opted not to convert into a
real-estate investment trust, a change investors including Jana and
Greenlight Capital Inc., had urged.
Jana increased the size of some of its holdings on the dips last week,
including in energy stocks and Walgreen Co., WAG -0.12% according to an
investor and a regulatory filing.
Millennium Management LLC, a $24 billion firm based in New York, saw losses
trip some of the firm’s internal loss limits as major takeover deals like
Shire hit headwinds.
Millennium is known for having a tight leash on its traders and in this case
cut off several of its portfolio managers from trading further because of
losses, a person familiar with the firm said.
★ 发自iPhone App: ChineseWeb 8.7
