Even Hedge Funds Start to Feel the Crunch
Market-beaters may have reversed upward trend with ugly July
By Sam Biddle,  Newser Staff
Posted Aug 4, 2008 1:30 PM CDT
Hedge funds are taking a hit from factors such as increasing energy prices.   (AP Photo/Noah Berger, File)
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(Newser) – 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.