Hedge Funds Performance

Early results point to a brutal July; Harbinger off 15%


The month of July caught many hedge funds off guard, including some of the industry’s marquee names, according to estimates through late July.

Portfolios that were long commodities, particularly energy, were hurt as the per-barrel price of Brent crude oil fell 12% during the month. Funds betting against financial stocks on concern about the lingering impact of the credit crisis also lost out. The financial sector moved sharply upward after the U.S. Securities and Exchange Commission issued an emergency rule that would enforce prohibition of naked short sales for 18 major primary dealers (plus firms Fannie Mae and Freddie