Macro Hedge Funds Lose Trading Touch as Bacon Returns $2 Billion
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Louis Bacon’s decision to return $2 billion to investors highlights the difficulties the biggest macro hedge funds are having this year as government intervention and declining trading volumes limit managers’ ability to make large bets.
Bacon told clients in a letter yesterday he’s giving back about 25 percent of the money in his main hedge fund after returning just 1.6 percent this year through July. Ray Dalio, who runs Bridgewater Associates LP, lost 2 percent in his $54 billion macro fund through July 20, according to investors. Alan Howard, who runs Brevan Howard Asset Management LLP, lost 1.3 percent in his Master Fund in the same period.