Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Lodestar

(2,388 posts)
Fri Jun 13, 2014, 08:37 AM Jun 2014

Hedge funds stung by wrong-way bets in slow markets

Source: Market Watch

Some of the biggest investors on Wall Street are losing money with wrong-way bets in markets around the globe, a surprising black eye amid a rise in stock and bond prices.

Hedge-fund managers including Paul Tudor Jones, Louis Bacon and Alan Howard are among those who have misread broad economic and financial trends. Some have lost money as Japanese stocks fell, while others have been upended by the surprising resilience of U.S. bonds.

An unusual period of calm has exacerbated problems for many trading strategies dependent on volatile markets. The losses by these so-called macro investors are contributing to a trading slowdown hurting the largest investment banks.

The flagship fund at $15 billion Moore Capital Management LP, led by star investor Bacon, was down 5% this year through the end of May, the firm has told clients. Jones’s flagship fund at $13 billion Tudor Investment Corp. is down 4.4% this year, according to a person familiar with the firm.

Read more: http://www.marketwatch.com/story/hedge-funds-stung-by-wrong-way-bets-in-slow-markets-2014-06-13?link=MW_latest_news

8 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Hedge funds stung by wrong-way bets in slow markets (Original Post) Lodestar Jun 2014 OP
Isn't that just too bad. hobbit709 Jun 2014 #1
Well, I guess this year's crop of trillionaires (counting their offshore $) will be smaller. nt valerief Jun 2014 #2
Where is Bernie Madoff when you need him? Renew Deal Jun 2014 #3
LOL ... nt quadrature Jun 2014 #6
Just horrible news. My heart breaks for them. Ikonoklast Jun 2014 #4
So, is it bailout time again? KansDem Jun 2014 #5
Not yet. First they need some sort of major crisis (like a war) hughee99 Jun 2014 #8
Nonetheless, Louis still brings home megaBacon ... GeorgeGist Jun 2014 #7

Ikonoklast

(23,973 posts)
4. Just horrible news. My heart breaks for them.
Fri Jun 13, 2014, 10:46 AM
Jun 2014

And another crop of Wunderkind learn the hard lesson that markets don't go up forever, nor do they react rationally.

hughee99

(16,113 posts)
8. Not yet. First they need some sort of major crisis (like a war)
Fri Jun 13, 2014, 12:35 PM
Jun 2014

to take the bailout story off the front page.

Latest Discussions»Latest Breaking News»Hedge funds stung by wron...