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Hedge Fund Giants Lose Their Appeal as Havens in Global Turmoil

  • Largest funds control 90% of industry assets; many are in red
  • Multi-strategy and some macro funds are exceptions this year
A Wall Street sign is displayed in front of New York Stock Exchange (NYSE) in New York.
Photographer: Mark Kauzlarich/Bloomberg

Investors have thronged the largest hedge funds since the last financial crisis as they sought safety in size. Now, they’re paying a hefty price.

Supersized funds are failing their clients during a period of market upheaval that in theory should pose an unprecedented chance to make money. Instead of profiting, though, some of the world’s biggest hedge funds have barely managed to protect their investors from losses.