New York Post – After months of falling financial stocks and rising oil prices, July’s sudden turnaround was a welcome relief to average investors.
Not so for hedge funds – including subprime-mortgage superstar Phil Falcone.
That’s because a number of smart-money investors, including Falcone’s Harbinger Capital Partners, got slammed when oil took an unexpected dive, and Wall Street stocks suddenly popped in mid-July.
It was the exact reversal of otherwise long-winning bets that energy prices would continue to climb and financial firms would keep getting pummeled.
"July will be bad in aggregate for the hedge fund industry," said Veryan Allen, who advises large investors on hedge funds. "The short squeeze in financial stocks and the oil selloff has hurt quite a few," he said.
