Some of the year’s best-performing hedge funds are nursing big losses for October, stung by reversals in energy stocks, takeovers and investments overseas.
Some large hedge fund managers are facing losses of 5 to 10 percent for the month, according to people briefed on the results. The losses may be tied in part to many funds selling their biggest winners at the same time, putting pressure on prices.
October, historically the cruelest month for investors, has been rocky. Despite a rally on Friday, the Standard & Poor’s 500-stock index is down more than 2 percent for the month, and Treasury yields have recently spiked. Comments by Federal Reserve officials early in the month set off fears of rising inflation, while crude oil prices have eased.
