The month of September is proving to be one of the worst in memory for hedge funds. The Securities and Exchange Commission’s restrictions on short selling curbed hedge funds’ ability to hedge positions, massive deleveraging temporarily froze credit markets and counterparty concerns have led funds to rethink their prime broker relationships and some of their holdings.
Dan Loeb’s Third Point offshore lost 11% in September (-17.8% for the year so far), while Lee Ainslie’s Maverick Fund slipped 19.4% (-21% for the year so far). SCP Ocean Fund, managed by Chris Shumway, lost 8.5% (-9% YTD), according to investors. Glenview