Shumway, Glenview among equity funds whipsawed in July
By Lawrence Delevingne
Wed Aug 11, 2010
Shumway Capital Partners and Glenview Capital Management are among those firms to get slapped for turning bearish in July following two down months.
After producing sizable gains for investors in 2009, several equity-focused funds were hit hard in recent months.
Fund managers were hammered twice by macro market trends, first holding long positions too far into May and June when the Dow Jones Industrial Average fell 11.21%, and then missing the Dow’s 7.08% July surge after cutting bets on stocks, mostly by reducing general equity exposure but also by taking additional short positions.
Overall, funds in the AR U.S. Equity Index gained 1.47% in July and are down 0.02% for the year against flat performance by the Dow.
“The fact is, everybody got smoked, everybody got whipsawed,” said an industry consultant, noting that several equity funds missed the July rally...
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.