Like fish out of water, several large hedge funds found themselves ill-positioned for January's downturn and by the second half of the month had recorded declines.
As of January 18, the year's second full week of trading, the S&P 500 had fallen 9.75%. Hedge fund losses were mostly less severe, indicating that the industry was living up to its reputation for outperforming in declining markets, even if it did not seem to be profiting from them.
Based on early estimates from investors, equity funds appear to have been hit the worst. With no major sectors performing positively, there was