What About Global Hedge Funds Facing Financial Crisis?

In the face of global hedge funds, do not think that small hedge funds can survive. A small hedge fund called Spruce AlphLa adopted a highly risky leveraged foreign exchange strategy, which resulted in a loss of nearly 50% in August alone. At present, the size of funds in all global hedge funds is about $2 trillion and 870 billion. HFR's data show that as of the end of September, the average hedge fund lost 1.5%, while the corresponding standard & Poor's 500 coefficient fell by 1 percentage points in the same period.

Over the years, the hedge fund industry has attracted billions of dollars in capital inflows as investors seek higher returns. But after months of hurdles, hedge funds' earnings have been much worse than before, and investors have been evacuated and many fund companies have gone bankrupt.

Overall, the HFR company, which tracks data from hedge fund industry, released a research report that in the third quarter of this year, the total amount of funds invested by hedge fund managers in investing in stocks, bonds, commodities and foreign exchange has shrunk by 95 billion US dollars. The hedge fund industry is facing the worst blood loss since the third quarter of 2008, the worst quarter affected by the financial crisis.

For months, a series of unexpected moves by central banks, Greek political difficulties, debt crisis in Puerto Rico and the sluggish Chinese market have led to global market turmoil and investors suffered serious losses. This is undoubtedly bad news for hedge fund managers, which means that any investment strategy they deployed previously has become meaningless - whether it is investing in distress companies or buying stocks.

Although the news came as a blockbuster in the financial circle, so far this year's market turmoil has not reached the level of the Lehman Brothers bankruptcy in 2008. The last time the hedge fund industry experienced such a decline, it was also then. The news of the divestment has led to the emergence of a critique of hedge funds. People have accused the hedge fund of its existence to protect investors when the market fluctuates drastically, but it is obvious that they failed to do so.

many hedge fund The "big guns" of the industry have also witnessed the "shocking reversal" of the company's earnings this year. William A. Ackman's Pershing Square Capital Management has lost 9.4% of its value this year, while Ackerman's favorite student, Mick McGuire (Mick McGuire), which is known as "hedge fund nova", has lost 11.6% of its earnings this year, which is founded by William Ackerman. In addition, those hedge funds who have won the "pound Sniper War" in recent years are beginning to feel bad now. For example, Glenview Capital Management, founded by Larry Robbins (Larry Robbins), has a deficit of 13.5%.

However, the most disastrous hedge fund managers are those who put eggs in the same basket, the so-called hedge fund hotels, which often invest all or most of their money in the same stock. According to research data from Nuo Weisi (Novus), nine popular hot hedge funds, including VRX and CQH, fell by more than 20% in the previous quarter.

Especially in September. Stock market The dark ages.

"Within two weeks, the merciless defeat almost hit all the big guys in the industry," said Stan Altshuller, chief research officer at Novus, Nuo Weisi.

Carlyle Asset Management Co, a private equity firm owned by Carlyle Group, said it received feedback from investors in August of this year and demanded a $2 billion withdrawal from the fund. Another family private equity Investment companies are also facing a similar dilemma. Bain Capital announced to investors at the beginning of this month that after three years of losses, the company decided to close its absolute return fund, which manages 2 billion 200 million dollars, and return all the funds to investors. Last week, Fortress Investment Group also announced the closure of its flagship hedge fund, which manages US $2 billion 300 million, because "the economic environment is not conducive to our best results." The company has lost 17% of its investors this year.