Hedge Funds

Hedge fund losses drive Manhattan real estate slowdown


Large deals by Man Group and Peter Muller’s PDT Partners have been the exception in recent months.

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The number of Manhattan real estate deals involving hedge funds fell significantly in October from the previous year, with the industry’s recent losses leading brokers to worry that 2011 could mark the first sizeable drop in activity since the financial crisis.

The full affect of poor performance in the third quarter has yet to be felt, but real estate professionals say hedge funds are signing fewer of the large and long-term leases, mostly in midtown Manhattan, that fuel the market for high-end real