Due to concerns of a recession, hedge funds experienced losses of around 8% in the first five months of 2022. For customers, equity hedge funds handle assets worth more than $1.2 trillion. Losses still look good compared to what the benchmark S&P 500 lost throughout that time. One of the worst months ever for hedge funds was May, when the HFRX Global Hedge Fund Index fell 1%. Index losses in the first five months of 2022 reached 3.31 percent. The funds that made significant investments in biotech and technology stocks have been hardest hurt.
Insider Monkey highlights 10 hedge funds that the economic recession is crushing. Gabriel Plotkin is the manager of the New York-based hedge fund Melvin Capital Management. It was one of the funds most severely impacted by the 2021 GameStop short squeeze. Plotkin intends to wind down investments and reimburse investors when losses grew more severe. A New York-based investing company is called Select Equity Group. To increase investor returns, the hedge fund focuses on long/short equities strategies. SS&C Technologies Holdings, Inc., a provider of software solutions, is one of its top holdings. A New York-based investing company is called Pershing Square. One of Wall Street’s most successful investors, Bill Ackman, serves as its leader. Ackman had been a proponent of the dominant streaming service Netflix, but he has now sold off a $1 billion interest in the company. A New York-based investment management company is called North Peak Capital. Seven stocks make up the tiny equity portfolio that the fund maintains. The fund’s seven assets have all experienced significant losses this year, ranging from 28 to 60 percent. As prices rise, North Peak is also experiencing significant obstacles. A New York-based hedge fund is called Third Point. Dan Loeb, a money manager with a personal net worth of around $4 billion who was born in California, serves as its chairman. By the end of May 2022, two of its biggest funds had lost 14 and 18 percent of their value year to date. For more details, click 10 hedge funds that the economic recession is crushing.
