Financial News reports that many of the world’s biggest hedge funds have emerged largely unscathed from this week’s turmoil in the markets, with well-known managers such as Paul Tudor Jones’ Tudor Investments, Louis Bacon’s Moore Capital, GLG Partners and Marshall Wace ending February up for the month.
A handful of hedge funds that had either taken a defensive stance – such as San Francisco-based global macro-manager Clarium Capital – or were heavily short-falling areas such as US subprime mortgages managed to rise as markets fell.
But the average fund still open to new money fell 1.37 per cent on Tuesday, the biggest one-day fall in two years, according to data released on Thursday by Hedge Fund Research. Its HFRX investable index, calculated daily, showed these funds were still up 0.18 per cent for the month, although data are not yet available for Wednesday, the final day of February.