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Hedge Funds Taking a Beating in Volatile Market

Thursday, 11 Aug 2011 | 5:16 PM ET
Private Equity Risk
Source: Getty Images
Private Equity Risk

Some of the world's top hedge funds are continuing to suffer losses during the painful month of August amid heavy market volatility.

The Deutsche Bank Alternatives Managed Accounts platform, which invests in hedge funds for the bank’s wealthiest clients, sent its weekly update to customers as of the close of business Tuesday.

Managed account performance is supposed to mirror, but not necessarily exactly match, fund performance. In this instance, however, the month-to-date figures have been verified.

The report, obtained by CNBC, shows some of the funds hit hardest are the Diamond Hill long/short fund, which was down 9.56 percent, and the Paulson International fund, which was down 5.28 percent.

The international fund is a part of John Paulson’s $6.5 billion Merger Arbitrage funds.

Others taking a hit include Barry Rosenstein's $2.85 billion activist fund Jana Partners, which was down 4.47 percent.

Jana made news earlier this month for acquiring a 5.2 percent stake in McGraw-Hill in a combined Securities and Exchange Commission filing with fellow investor Ontario Teachers Pension Plan, which has about C$100 billion under management.

James Dinan's $14 billion York Capital multi-strategy fund was also down 4.21%.

Among the best-performing funds were the $1 billion quantitative macro fund Conquest, which was up 7.94%, and Dan Loeb's $7.9 billion Third Point offshore fund, which was down only 1.88% but up about 5% on the year.

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