Hedge funds suffer worst month since late 2008

Global hedge funds suffered the heaviest losses for 18 months in May having come into the poor month for equity markets with large long positions.

Large groups including Odey Asset Management, Moore Capital, Lansdowne Partners, CQS and Bluecrest posted trading losses of as much as 10%, leaving most of the year's gains wiped out in a month, The Telegraph reports. The Hennessee Hedge fund index reported the average fund was down 2.99% last month, the worst drop since October 2008 at the height of the global banking meltdown. Another index from Hedge Fund Research revealed the average was down 2.26%, the worst collective performance since November 2008. A number of funds are believed to have started May with large long equity p...