US$2.25 trillion hedge fund industry hurt by June sell-off

By IVCPOST Staff Reporter

Jul 06, 2013 07:22 AM EDT

In June, the quick market sell-offs stumbled experts in the US$2.25 trillion hedge fund industry. Daniel Loeb, Barry Rosenstein, David Einhorn and Leon Cooperman were the foremost managers who lost a lot in the month.

Fed Chairman Ben Bernanke's remarks triggered the market sell off. Bernanke said the Central Bank would consider reducing its easy money program. He also said that by the end of the year, the bank would taper billions per month in bond buying.

The losses put an end to the consistent year-to-date improvement among several hedge funds. The hedge funds were fueled by a solid stock market recovery at the beginning of 2013. The speculations that Japan's economy would finally get better also stimulated the said funds.

"We are putting capital where it won't be affected by swings in interest rates," stated Maglan Capital's David Tawil. Tawil's hedge fund was up 23% this year after plunging by 1.2% in June. "It is a risk I want to live without because it is not something you can't plan for or fight."

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