Because of fears of a slowing global economy, stock market volatility and a decision concerning Fannie Mae and Freddie Mac that took a heavy toll on many fund managers, hedge funds had a sluggish autumn. Among the hardest hit was John Paulson’s firm, with one of its funds losing 11%, according to Businessweek.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at firstname.lastname@example.org.
Hedge funds as a group returned 2.3% and were down in September 0.2% compared to a 6.7% upside for the S&P 500 so far this year. Hedge funds even fell behind U.S. treasurys up 3.7% so far in 2014. After the September 18th peak, stocks have slid 4.1% and volatility has grown by 56%.
Paulson’s funds were performing well until July, but were hit particularly hard in September. His Advantage fund, which invests in companies going through corporate transition, dropped 13%. The Advantage Plus fund fell 11%, according to sources close to the matter. However, the unrestricted share class of Advantage was up in September, mainly because of its investment in Alibaba, which had a successful IPO last month.
Not all hedge funds have been losing bets. Ken Griffin’s Citadel rose 4.4% in September, with its main Kensington and Wellington funds returning 15% so far in 2014.