Many of the world’s largest hedge funds have been left nursing billions of dollars in losses following the industry’s most brutal month since the collapse of Lehman Brothers.
Falling equity markets have caught hedge fund managers off-guard, leading to significant losses as portfolios declined in value and managers sold holdings, crystallising losses.
According to provisional estimates from consultancy Hedge Fund Research, the average hedge fund has lost 4.1 per cent during August – making the month the industry’s fourth worst ever.
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