September Was the Worst Month for Hedge Funds Since ’08

This is an amazing stat, especially considering the fact that the broader indices held up well.

The sector as a whole lost $78bn due to its performance in August, the worst monthly absolute fall in assets since October 2008 — the month following the collapse of Lehman Brothers — according to research by Citi.

There’s a twist to that stat, however. Assets uder management have trebled since 2008 to over $3t. Nevertheless, firms like Greenlight (-17%) and Pershing Square (-12%) got absolutelty poleaxed in the month of September. It was as if all of the hedge fund hotels were detonated all at once.

It should make for a most interesting October.