Seeking Alpha – A report making the rounds today detailed managers’ Form 13-F filings. This report shows what managers own. Their holdings of U.S. stocks by and large plummeted. The decline in the size of the positions could be from market share losses or the sale of a position, or most likely, both.

Atticus Capital reduced its holdings from $8.1 billion to $510 million. Tudor Investment from $5.7 billion to $453 million. SAC Capital Advisors said its holdings of U.S.-based stocks (and options and converts) were $7.7 billion vs. $14.4 billion last quarter. Moore Capital said the "value of its 13-F securities fell 69% to $1.4 billion." And on and on.

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New York (HedgeCo.Net) – Clients of Fortress Investment Group LLC have requested to withdraw more than $4.5 billion of their assets over the next few months, according a statement released by the hedge fund yesterday.

The company reported its first annual loss since going public, mostly due to its Drawbridge Global Macro funds losing over 13 percent this year through the end of September.  If investors have their way, this would take a 25 percent chunk out of the total assets under Fortress’s management. 

Fortress isn’t the only hedge fund dealing with a hit of investor withdraws.  The sour economy and recent credit crisis has sent a wave of panic over some investors, prompting them to rush for redemptions.  Some hedge funds choose to “freeze” investor withdraws until the market takes a turn for the better, or until they can figure out how to wind down the fund in an orderly manner.

Fortress said it received $2.6 billion in redemption requests for its liquid hedge funds, which include the Drawbridge Global funds and the Fortress Commodities funds.  Its hybrid hedge funds, which include the Drawbridge Special Opportunities funds which saw a drop of over 7 percent in the third quarter, and the Fortress Partners funds, will lose $1.9 billion in capital because of the withdraws.  

Fortress reported a third-quarter loss of $20 million, equivalent to 4 cents a share.  A year earlier, they were posting a profit of around 26 cents a share.  The company currently manages $34.3 billion in assets, a 2.1 percent drop from last quarter.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Forbes – It’s hard to fathom. But as lousy returns start pouring in, managers of some of the most successful hedge funds in recent years are apologizing for their dismal showing.

"The last quarter has been abysmal," wrote TPG-Axon Capital Manager Dinakar Singh, highlighting the sentence in bold and underlining the word abysmal. "And we are sorry to have let you down with the terrible performance of the portfolio." TPG-Axon is down about 20% through September, say market players. A spokesman declined to comment.

Greenlight Capital, well-known for its long-time bearish position on Lehman Brothers, acknowledged to investors that "we made some mistakes. … In hindsight, our suggestion from last quarter’s letter to go to cash and go to the beach would have been the better option."

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