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. Joness 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
hobbit709
(41,694 posts)valerief
(53,235 posts)Renew Deal
(81,803 posts)quadrature
(2,049 posts)Ikonoklast
(23,973 posts)And another crop of Wunderkind learn the hard lesson that markets don't go up forever, nor do they react rationally.
KansDem
(28,498 posts)hughee99
(16,113 posts)to take the bailout story off the front page.
GeorgeGist
(25,294 posts)for himself and his family.