October Hammers Several Hedge Funds
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Many hedge funds who tried to call a bottom got killed as the markets declined past even the most pessimistic expectations. On top of that, hedge funds were hit by client redemptions, demand for more collateral from lenders, and accelerated asset sales as Lehman Brothers went out of business.
Hedge Fund Research Inc said, on average, hedge funds have lost 15.5% YTD and 5.4% last month. Investors in hedge funds looking to raise cash or wanting to get their money out of the market have responded by withdrawing an amount that may 15% of assets in U.S. based hedge funds.
Included in the hedge funds that have been bruised this year are some of the most popular and talked about hedge funds. Jeffrey Gendell's Tontine Capital Partners lost 65.7% in October, extending its decline to 76.8% for the year. John Burbank III's Burbank Global Strategy fell 38% in October and 44% YTD. Ken Griffin's Citadel lost 22$ last month in his Kensington and Wellington funds, for a YTD loss of 39%.
Two funds that saw its gains evaporate from the beginning of the year include Harbinger Capital and Clarium Capital. Philip Falcone's Harbinger Capital lost 5% in October, bringing his YTD loss to approximately 13%, but his fund was actually up more than 40% at the end of June. PayPal co-founder Peter Thiel's Clarium Capital dropped 18% in October, reporting a YTD return of 2.8%, erasing a 58% gain from the first half of the year.
Intense demand for redemptions has caused some hedge funds to freeze investor withdrawals. These funds included Nobel-prize winner Myron Schole's Platinum Grove Asset Management, Blue Mountain Capital Management and Deephaven Capital Management.
Although most funds had a hard time last month, there were a few standouts who actually made money in October, including Ionic Capital, John Paulson's Advantage Plus Fund, Bloomfield Capital and Bruce Kovner's Caxton Global Investment.
Below are returns of several hedge funds for October and year-to-date (YTD) results.
Hedge Fund Research Inc said, on average, hedge funds have lost 15.5% YTD and 5.4% last month. Investors in hedge funds looking to raise cash or wanting to get their money out of the market have responded by withdrawing an amount that may 15% of assets in U.S. based hedge funds.
Included in the hedge funds that have been bruised this year are some of the most popular and talked about hedge funds. Jeffrey Gendell's Tontine Capital Partners lost 65.7% in October, extending its decline to 76.8% for the year. John Burbank III's Burbank Global Strategy fell 38% in October and 44% YTD. Ken Griffin's Citadel lost 22$ last month in his Kensington and Wellington funds, for a YTD loss of 39%.
Two funds that saw its gains evaporate from the beginning of the year include Harbinger Capital and Clarium Capital. Philip Falcone's Harbinger Capital lost 5% in October, bringing his YTD loss to approximately 13%, but his fund was actually up more than 40% at the end of June. PayPal co-founder Peter Thiel's Clarium Capital dropped 18% in October, reporting a YTD return of 2.8%, erasing a 58% gain from the first half of the year.
Intense demand for redemptions has caused some hedge funds to freeze investor withdrawals. These funds included Nobel-prize winner Myron Schole's Platinum Grove Asset Management, Blue Mountain Capital Management and Deephaven Capital Management.
Although most funds had a hard time last month, there were a few standouts who actually made money in October, including Ionic Capital, John Paulson's Advantage Plus Fund, Bloomfield Capital and Bruce Kovner's Caxton Global Investment.
Below are returns of several hedge funds for October and year-to-date (YTD) results.
| Fund | Oct. % Return | YTD % Return |
|---|---|---|
| Passport Global Strategy | -38% | -44% |
| Platinum Grove Contingent | -29% | -38% |
| Citadel Kensington | -22% | -39% |
| Farallon Capital | -9% | -23% |
| Clarium | -18% | -2.8% |
| Greenlight Capital | -13% | -26% |
| Third Point Offshore | -10.3% | -26.9% |
| Tontine Capital Partners | -65.7% | -76.8% |
| Harbinger | -5% | -13% |
| Bloomfield Capital | 2.7% | 21.7% |
| Paulson Advantage Plus | +3.8% | +29.4% |
| Ionic Capital | +8% | +16.5% |
| Caxton Global | +2.6% | + 7.25% |
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Harbinger Capital, Citadel, Ken Griffin, Caxton Associates, Greenlight Capital, David Einhorn, Lehman Brothers, Paulson & Co. (PCI), Jeffrey Gendell, Third Point LLC, Farallon Capital Management, Tontine Partners, Deephaven Capital Management, Clarium Capital Management, Hedge FundsSign up for StreetInsider Free!
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