Hedge Funds

Copper River's subprime short fails to stem the red ink


Shorting subprime hasn't produced huge net returns for everyone. Despite its big, and early, short bet on subprime lender Novastar Financial, which has finally imploded, Copper River was posting a loss this year of about 17% as of the end of October, on top of a decline of more than 9% in 2006.

Copper River performed well during the summer's swoon; it was up 11.4% in July. But by the end of October, it had fallen deep in the red and was underperforming its peers for the year. Black Bear offshore was up 10.62% through October, while Ursa