After a serious tumble, tech managers retrench
with core holdings.
By Pete Gallo
Returns for tech-focused hedge funds suffered a sharp
decline in this year's first quarter, marked by a big selloff
in Google, Baidu.com and other formerly highflying names that
made 2007 a banner year for the Nasdaq Composite - and the
After a gain of 12.5% last year, long/short technology hedge
funds were down 5.55% through March, compared with a 1.1% loss
for the Absolute Return Composite index. Thanks in part to
their shorting skills, long/short tech funds are still miles
ahead of the Nasdaq, which gave up 14.1% in the first quarter.
The environment, however, remains treacherous, with few
managers expecting a full-scale recovery to take place this
year. As such, managers of dedicated tech portfolios and
diversified long/short funds alike are scrambling to retrench,
both tweaking their net and geographical exposures and
concentrating on core...