Hedge Funds

Passport's frustrating plunge


John Burbank's Passport Capital, which triumphed with a 220% return in 2007, based largely on its subprime short, is now suffering. The aftershock from the credit crunch that was so profitable for Passport last year has devastated Passport's positions this year in its various funds.

Burbank's global strategy fund lost 10.8% in the first quarter, hurt by quantitatively driven hedge funds selling the most fundamentally sound stocks into strength while purchasing stocks thought to be cheap but that may have bad long-term fundamentals, the firm argued in a February letter to investors.

John Burbank

"Stocks with