Since our subscription to the HSBC HF tracker appears to have expired, we now rely on Bloomberg Brief's for hedge fund performance update. And what an ugly update it is, especially for members of the old groupthink guard, led by Pershing Square's Bill Ackman. To wit: "William Ackman’s Pershing Square Capital Management LP dropped by 6.7 percent in the first half of August to drop year-to-date returns to -10.57 percent, according to HSBC Private Bank data." And while we know of the scorched earth currently happening on the 50th floor of 1251 Avenue of the Americas, another big time hedge fund, Owl Creek, is getting pummeled behind the scenes: "Owl Creek Asset Management LP’s $4.8 billion offshore fund was down 9.3 percent in the first 12 days of August, according to HSBC Private Bank data. The fund, managed by Jeffrey Altman, is down 9.16 percent year-to-date through Aug. 12."
- Quant Z Capital Management Ltd. was up 80 basis points in the first 15 days of August and had returned 7.3 percent year-to-date through Aug. 15, according to an email sent to investors, a copy of which was obtained by Bloomberg. The New York-basedfund is managed by Milind Sharma.
- Arrowhawk Capital Partners’ Commodity Strategies fund was up around 3 percent in the first half of August to bring year-to-date returns to around 11.5 percent, according to an individual with knowledge of the matter who declined to be named because the information is private. The $180 million fund is managed by Jennifer Fan.
- A $2 billion hedge on the S&P 500 Index generated more than $100 million in profit for Carl Icahn, Bloomberg News reported, citing two people with knowledge of the trade.
A summary of return by strategy. Something tells us that with the market on the verge of a bear market, there is at least one typo in the observation that short-biased equities are the only strategy down for the year.