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Hedge Fund ‘Hotels’ Burned Managers Who Sought Refuge in October

  • Rushing into the same stocks turned ugly for several funds
  • More broadly, long-short and activist strategies saw big drops
Macau Casino Profits to Show Strength Despite China's Economy
Photographer: Paul Yeung/Bloomberg

Hedge fund hotels are proving to be no respite for money managers.

Many of the worst-performing funds in the last several weeks had all piled into the same stocks, according to data compiled by Bloomberg. Favorites such as Electronic Arts Inc. and Wynn Resorts Ltd. lost more than 20 percent of their value in October and were among the S&P 500 Index’s worst performers.