March was a particularly tough month for both the broad markets and for hedge fund managers in general. The S&P 500 posted a 1.77% loss, which contributed to its quarterly loss of 2.15%. Fixed-income markets also finished the quarter with losses, making it difficult for hedge fund managers to find profitable investment opportunities. Some hedge funds took big hits on pharmaceutical stocks, as two drug makers saw a dramatic plunge in their stock prices after planned drug releases were blocked by the FDA.
Even the hedge fund heavyweights endured losses, including David Einhorn's Greenlight Capital, which notched a