The quiet market has made for a rough year for investors. Particularly for some of Wall Street’s hedge fund titans, a WSJ article said today.
Hedge funds specialised in macroeconomic trends have been losing money this year after investing in the wrong global markets.
According to the article, these are some investors hurting:
- Alan Howard — Brevan Howard Capital Management is down 3.8% through June 6
- Louis Bacon — Moore Capital Management is down 5% through May
- Paul Tudor Jones — Tudor Investment Corp is down 4.4% this year
- Kyle Bass — Hayman Capital Management is down more than 6% in the first quarter
Other firms posting losses include Woodbine Capital Advisors, Bruce Kovner’s Caxton Associates, and Michael Novogratz’s Fortress Investment Group. Worried investors are starting to pull funds from these macro hedge funds after seeing the damage.
Some failed strategies include investing heavily in the Japanese stock market (while the Nikkei Stock Average is down 7.1% since January), and underestimating U.S. bonds.
Hopefully things will turn around when the market shifts… whenever that is.