Activist U.S. hedge funds hurt by late-year stock tumble | Reuters


BOSTON (Reuters) – Widely followed activist investors Daniel Loeb, Barry Rosenstein and William Ackman suffered heavy losses in December, when fears about trade battles and slower growth sent stocks spiraling lower.

Many fund managers are still compiling annual returns, but early data from some of the industry’s most prominent firms shows how December’s stock market tumble erased gains at many funds. At others, the fall expanded small losses into bigger ones.

Early data from Hedge Fund Research shows that the average hedge fund lost 6.7 percent last year, slightly more the S&P 500’s 6.2 percent loss. Data for activists’ funds full-year returns have not been finalized.

Loeb’s Third Point, fresh from settling for board seats at Campbell Soup Co, told investors its Third Point Partners fund closed 2018 with a 10.7 percent loss after sinking 6.2 percent in December. The Third Point Ultra fund lost 7.8 percent in December to end 2018 down 14.7 percent.




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