Hedge Funds

Okumus funds hit by bad bets in retail, commercial services

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Losses in December topped off an extremely difficult year for Ahmet Okumus' Okumus Capital. In part due to wrongsided bets on retail and commercial services, the firm's equity strategies ended the year in negative territory for the first time since Okumus' founding in 1997.

The steep declines - including a loss of 26.32% for the $465.7 million Okumus Opportunity strategy and a decline of 11.28% for the $240.1 million Okumus Diversified Value portfolio - have led some investors to wonder what the firm can do to recover. U.S. long/short equity funds generally had a good year in 2007, returning