The Wall Street Journal reports,"a number of multibillion-dollar funds are down sharply this month, pushing losses into double digits on a percentage basis for the year at some firms, according to investor communications reviewed by The Wall Street Journal.
Some of the common losing positions in recent weeks were in technology and biotechnology shares, including Google Inc. andValeant Pharmaceuticals International Inc".
The downturn at many funds, including Viking Global Investors LP and JAT Capital Management LP, surpasses the decline in the broader market, where the S&P 500 index was down 1.2%, including dividends, for the year through the end of last week. That is the same period covered in the latest investor communications.
Entering the year, many fund managers were betting that last year's bull-market rally would continue, and they boosted their exposure to certain top-performing stocks.
For the first three months of the year, hedge funds across the industry gained on average 1.1%, the lowest since 2009, according to research firm HFR Inc. The slide accelerated for some firms this month, especially those focused on stocks. The median equity-focused hedge fund lost more than 2% in the first two weeks of April, according to Morgan Stanley.
