Hedge funds are suffering under “a merciless sell-off” and market turbulence, the newspaper reported, citing the Investment.com.
"The only thing that seemed to work was cash. Of course that's the one thing they [the hedge funds] don't have," financial expert Paul Brain said, cited by CNBC.
Funds specializing in stock picking were mostly affected by the downturn. For instance, Greenlight Capital — a hedge fund founded in 1996 – lost about 17% of its assets.
Market volatility reached its peak at the end of August, leading to a fall in stock prices and a slowdown in the global economy.