New York Post- A pair of hedge funds that are getting battered by the choppy markets of the past few months are serving as a stark reminder that the pain inflicted on the once white-hot hedge-fundsector isn’t only confined to those with subprime-bond exposure.
Drake Capital Management’s $3.91 billion flagship Global Opportunities fund dropped an eye-popping 10.5 percent in October after sailing through last year with astronomical gains. The fund is down 9.91 percent for the year, according to HSBC.
That stands in sharp contrast to last year, when the fund garnered widespread accolades as it racked up a 41 percent gain on bets on currencies, commodities and emerging markets equities.
Classified in the hedge-fund community as a global bond fund, Drake’s flagship fund in reality is described by hedge fund investors as a classic macro fund, making bets across most liquid asset classes.
