Hedge funds lost out in August after stocks fell

 
City A.M. Reporter
MOST hedge funds lost money in August as some of the industry’s best-known names were caught out by dips in the stock market.

The average fund lost 0.55 per cent last month after gaining 1.9 per cent in July, according to data released yesterday by New York consulting firm Hennessee Group.

Hedge funds lost 1.29 per cent in June and fell 3.21 per cent in May, reported Hennessee, one of a handful of groups that track performance and asset flows in the secretive $1.5 trillion (£969bn) industry.

John Paulson, who earned $15bn with a bet that the US housing market would crumble in 2007, told investors that his flagship Advantage Plus fund fell 4.3 per cent last month, leaving it down 11 per cent for the year, people who invest with him said.