Tags: hedge | funds | growth | stocks

Hedge Funds Suffer From Drop in Growth Stocks

By    |   Friday, 18 April 2014 10:07 AM

The fall of growth stocks, particularly in the technology sector, whacked some hedge funds but good early this month, according to CNBC.

"The past two weeks for hedge funds have been diabolical," one stock-fund manager told the news service. This manager found the declines in the Nasdaq Composite index and the Russell 2000 index particularly bracing.

The Nasdaq Composite index dropped 8.5 percent from its 13-year high March 6 through last Friday. And the Russell 2000 slid 8.4 percent from its record high March 4 through last Friday.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!

Stocks rebounded this week, but the earlier declines have spawned the worst market environment for stock-oriented hedge funds in at least 18 months, market participants told CNBC.

Large hedge funds including Viking Global Investors, Maverick Capital and Lone Pine Capital have slipped in April, people familiar with the matter told CNBC. Viking plunged almost 4 percent through April 11, one of these people said.

Stock-focused hedge funds dipped 1.23 percent on average in the first week of April, according to report from Bank of America Merrill Lynch.

It wasn't a good year for hedge funds even before April. Globally, hedge funds gained an average of 1.23 percent in the first quarter, their worst first quarter since 2008, which coincided with the financial crisis, according to research firm Preqin.

"Some people were relying too much on momentum, and those that were have been punished," an investor with several billions of dollars committed to hedge funds told the Financial Times.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
InvestingAnalysis
The fall of growth stocks, particularly in the technology sector, whacked some hedge funds but good early this month, according to CNBC.
hedge, funds, growth, stocks
270
2014-07-18
Friday, 18 April 2014 10:07 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved