Hedge fund managers that are in the long/short equity space are getting crushed right now as the market crashes, according to CNBC’s Kate Kelly.
Kelly didn’t have any names and neither do we but Liam Dalton on CNBC earlier today said that he’s getting rid of “beta,” which is essentially market exposure.
And Caxton, a global macro fund, recently told investors that they were getting rid of all beta too.
Of course, many will be saying: Obviously.
But this is going to be ugly. A fund of funds manager tells us he’s predicting that many long/short managers could be down up to 10% this month if this continues.
In sum, the evidence we’re seeing of what’s happening to many hedge funds right now suggests that basically any hedge funds with market exposure are losing a lot of money right now.
UPDATE: rumours that John Paulson and Dan Loeb are among the managers hurting, meanwhile global macro guys do great