September proves bloody for many funds


September’s market turmoil is turning into a bloodbath for many big-name hedge funds, including Cantillon Capital Management, Harbinger Capital Partners, Maverick Capital and Third Point Capital. The deepening financial crisis, and the Securities and Exchange Commission’s controversial – and confusing – ban on short selling is causing widespread distress for equity, credit, event-driven and arbitrage players.

Harbinger Capital Partners, managed by Phil Falcone, has given up nearly all of its gains this year, declining 12% in the first weeks of September to cut its total gain for the year to date to only 2% as of early this week,