Marshall Wace Long-Short Fund Reports Record Loss

MW Global Opportunities Fund fell estimated 7% last month
London-based firm’s flagship MW Eureka fund lost about 1.5%

Skyscrapers in the square mile financial district of the City of London, U.K., on Monday, Jan. 4, 2021. Britain's long-awaited trade deal with the European Union still leaves many questions unanswered for the world's biggest banks, trading venues and money managers as they prepare for a rupture in the region's financial system.Photographer: Jason Alden/Bloomberg

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By Nishant Kumar

February 3, 2021 at 11:13 AM UTC

This article is for subscribers only.

A Marshall Wace hedge fund that bets on rising and falling stocks slumped to a record loss in January, as the U.S. market was shaken by a short squeeze driven by retail investors.

The $4.4 billion MW Global Opportunities Fund fell by an estimated 7%, the biggest monthly decline since it started in 2009, according to an investor letter seen by Bloomberg. That compares with an average loss of 5.9% for a group of long-short hedge funds tracked by Goldman Sachs Group Inc., and a drop of about 1% for the S&P 500.