These Small Cap Energy Stocks That Hedge Funds Love Have Been Getting Crushed

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Losses are again ballooning in a corner of the U.S. stock market where professional speculators roam.

Small-cap shares tracked by the Russell 2000 Energy Index have plunged 34 percent in three months, including a 24 percent skid since June 26 in which the group posted four straight weekly losses averaging 6 percent each. Rex Energy Corp. and Penn Virginia Corp. fell more than 50 percent in July alone.