An Unidentified Japanese-Focused Hedge Fund Suffered A 40% Hit

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A report by Soc Gen’s Lyxor unit has the damage done to hedge funds because of Japan hitting around 5%.

But one unidentified hedge fund lost a whopping 40% (temporarily, at least).

From MarketWatch:

“Many in the Long/Short space have suffered 5% to 10% losses,” said Ed Rogers of Wolver Hill Asset Management, a Tokyo-based firm that invests in a range of Japan-focused hedge funds.

“We know of one fund that suffered a 40% hit, but that is an extreme outlier,” Rogers added. He didn’t identify the fund.

A rebound in Japan’s stock market on Wednesday brought many hedge funds back from losses and “some remained in positive return territory throughout,” he said.

In Wolver Hill’s portfolio, four out of 12 managers are positive for March so far, with returns ranging from 4% to 0.15%, Rogers noted. Short positions, or negative bets, were the source of those gains, he added.

One fund that might have suffered a great loss is Cerebus. It has a 30% exposure to Japan, according to a source who spoke to MarketWatch.

More on Cerebus:

Stephen Feinberg’s Cerberus SPV said it’s Japan exposure is roughly 30%. One holding is Aozora Bank Ltd., according to the investor. Shares of the Japanese lender have dropped more than 13% since the quake hit Japan on March 11.

Here’s how the crisis affected John Paulson:

  • Paulson Advantage Fund Limited, was down 6.14% as of March 15
  • Paulson International Fund Limited was down 2.25% as of March 15

And here’s how one of Paul Tudor Jones’ funds was affected:

  • Tudor Momentum Fund Limited was down 7.1% as of March 15

No word on how the crisis might have affected to Andy Hall’s Astenbeck, but a source predicts that he was hit too. 

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