Not just bad Argentina bets — BlackRock, Lansdowne, and Joseph Edelman were also humbled by August losses

September 10, 2019

larry fink

Some of the biggest losses from August came from macro hedge funds that bet big and lost on recent elections in Argentina that sent the South American country’s inflation rate soaring once again. But other notable funds tripped up as well.
BlackRock’s long-running Obsidian fund and Perceptive Advisors, as well as the UK’s Lansdowne Partners, posted August losses.
Hedge funds as a whole mostly broke even, according to Hedge Fund Research, while the S&P lost roughly 2% for the month.
Click here for more BI Prime stories.

For many hedge funds, August was a month where a bad bet on Argentina might have ruined your year.

Funds like Autonomy Capital, which lost $1 billion when Argentina elected out President Mauricio Macri for the more left-leaning Alberto Fernandez, will recall August 2019 wearily.

But several other large funds that didn’t make bets on the outcome of a foreign election also struggled in August.

In the United States, Joseph Edelman’s well-known Life Sciences fund, which invests in healthcare and biotech, tumbled by more than 9% while BlackRock’s long-running Obsidian fund lost roughly 3% for the month. One of the UK’s biggest hedge fund managers, Lansdowne Partners, also posted a loss of 4% in its flagship Developed Markets fund.

The US equity market fell by roughly 2% in the month while the average hedge fund roughly broke even.

See more: From an army of traders in Long Island to quants around the world: What’s coming next for hedge-fund powerhouse Schonfeld Strategic Advisors

“There were no material negative catalysts that contributed to our August performance,” said Jim Mannix, COO of Perceptive, in an email.

“The Fund’s performance in August was attributed to the general volatility in the market and, to a larger degree, some of our larger positions, which had performed very well YTD through July, experienced a …read more

Source:: Business Insider

(Visited 3 times, 1 visits today)