WSJ – A rough year for hedge funds turned more perilous as investors sold broad swaths of stock, including shares tied to pending takeover deals, after a closely watched merger hit the skids.
Hedge funds have spent much of the past year and a half playing catch-up to the overall market. Adding to their troubles, the past few weeks have seen several of their most popular investments, including bets on oil-services and technology shares, turn sour. The Dow Jones Industrial Average finished Wednesday down 173.45 points, or 1.1%; earlier in the day, the index had declined as much as 460 points.
