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Some of the world's largest hedge funds are getting crushed

Aug 11, 2017, 22:36 IST

A trader watches the screen at his terminal on the floor of the New York Stock Exchange in New York October 15, 2014. REUTERS/Lucas Jackson

Some of the world's largest hedge funds have lost money this year - or made barely any - even as markets have hit record highs.

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The funds are run by firms including Bridgewater Associates, the largest hedge fund firm in the world, and Two Sigma, one of the fastest-growing firms.

The weak performance is especially striking, as the S&P 500 has delivered 10.4% through July. In addition, 54% of active managers outperformed their benchmark Russell 1000 index in the first half of 2017, according to Bank of America Merrill Lynch. At this pace, they're headed for their best year since 2007.

To be sure, many of these funds have gotten to the size they are due to strong performances in previous years. Still, the weak 2017 performance by some of the biggest names in the hedge fund industry highlights the challenge facing many managers.

The HFRI Weighted Composite Index, which tracks hedge funds, returned 4.8% this year through July.

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What follows are this year's returns for major funds, after fees. All the figures come from private client documents reviewed by Business Insider, unless otherwise noted. These funds manage money for public pensions, university endowments, sovereign wealth funds and the rich, among other big investors.

All asset figures, unless otherwise noted, come from the HFI Billion Dollar Club ranking, which measures firmwide hedge fund assets and are from the start of the year.

Bridgewater Associates, the world's largest hedge fund firm which says it has about $160 billion

  • Pure Alpha II flagship fund: -2.8% this year through July
  • Pure Alpha fund: -1.6% this year through July
  • Major Markets fund: -7% this year through July

One of Bridgewater's strategies has posted gains:

  • All Weather: 6% this year through July, according to a person familiar with the matter.

Two Sigma, $30.4 billion

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  • Absolute Return Macro Cayman (CTA strategy): -7.19% this year through July
  • Two Sigma's Risk Premia strategy made essentially no money in the first half of the year, returning 0.06%.
  • The firm's Compass Cayman fund is down 3.8% this year through July 28, according to data from HSBC.

One of Two Sigma's funds has gained this year, however:

  • Absolute Return Cayman Fund: 1.25% in July and 6.31% this year through July

Maverick Capital, $11 billion

  • Maverick Fund USA: 0% through June
  • Maverick Levered: -1.7% through June

Some of Maverick's funds have gained, however:

  • Maverick Long: 10.7% through June
  • Maverick Long Enhanced: 10.8% through June
  • Maverick Select: 4.9% through June

Greenlight Capital, $7 billion at mid-year, per the Wall Street Journal

  • -2.8% through June

Carlson Capital, $10 billion. All figures through July.

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  • Black Diamond Thematic fund: -14.2%
  • Double Black Diamond, LP: -2.1%
  • Black Diamond Partners, LP: -3.7%
  • Black Diamond Relative Value Partners, LP: -3.2%
  • Black Diamond Energy, LP: -6.8%

Some of Carlson's funds have gained, however:

  • Black Diamond Arbitrage Partners, LP: 6.2%
  • Black Diamond Mortgage Opportunity, II: 5.6%

Graham Capital, $14.4 billion as of August, per Business Insider reporting

  • The firm's flagship Tactical Trend strategy, a quantitative fund which manages about $5 billion, is down -2.3% after fees this year through July
  • Tactical Trend Capped Beta, which is a derivative of Graham's flagship quant strategy, is down 15.4% after fees. Graham's K4D-10V fund is down -3.03%.
  • The Absolute Return Class A fund, which is the biggest of the firm's discretionary strategies, is down -5.2% this year through July.

Highfields Capital, $12.4 billion

  • The Highfields Capital IV LP fund, the firm's biggest fund with about $5.6 billion, returned 1.2% for the first half of the year.

Balyasny, $12.6 billion

  • Balyasny's Atlas Global fund was basically flat through June, returning 0.08%.
  • Atlas Enhanced fund was also eseentially flat, returning 0.78%.

Caxton Associates, $8 billion

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  • The Caxton Global Limited Investment Limited fund lost 11% through August 1, according to HSBC data.

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