Hedge funds with long exposure to the equity market (generally long/short managers) are getting crushed right now.
Investors have faith they’ll bounce back later in the year, but that’s assuming they change course in their investments or the market gets comfortable with what’s going on in Europe, for one.
We rounded up the hedge fund managers that are standing out in the recent volatile environment, whether its for performing well or poorly.
Here’s what’s happening.
Invested in: We're guessing he's probably shorting European bank stocks, betting against the debt of European companies in sectors such as cyclicals and telecoms, and utilities, because they would be hurt by austerity measures taken by indebted governments.
Returns: +1.64% in July, +4.71% YTD in CQS's Credit Long-Short fund.
Invested in: Macro funds like Brevan Howard's were likely betting that Sovereign interest rates would go up and bonds would go down and shorting the Euro dollar while going long LIBOR.
Performance: +11% YTD in the Master (macro) fund, which is managed by founder Alan Howard and 50+ portfolio managers; +8% through August
Invested in: Yandex, Liberty Global, (probably) Facebook, Netflix and Amazon were his top long holdings as of June 30 2011. But his is a long/short tech fund, so he probably had a number of profitable shorts on too.
Returns: around +30% YTD through July
Invested in: Sina Corp, Baidu, Priceline, Wynn Resorts, and Netflix are his top long holdings as of June 30 2011. But his is a long/short tech fund, so he probably had a number of profitable shorts on too.
Returns: +32.5% YTD through July