Hedge funds, usually known for beating the wider market, are taking a hit in the general financial slump, the Wall Street Journal reports. Though they're still outperforming the market for the year, early data suggest that trend might have reversed last month: One study of 60 funds shows them off 2.8%, worse than the S&P 500’s 1% July fall.
Some notable losers have been $2.3 billion Highland Crusader Fund, with a history of investing in ailing companies—down 15% this year. And two large London-based firms specializing in energy—Special Situations Fund and RAB Energy—are off 32.5% and 27.4%, respectively. "It was a comeuppance month,” laments one fund manager.