A steep slope for hedge fund managers. Biggest minus ever for Ole Andreas Halvorsen Viking’s fund

A steep slope for hedge fund managers.  Biggest minus ever for Ole Andreas Halvorsen Viking's fund

According to the Wall Street Journal, gold number One of the largest hedge fund managers in the US last year. Many of the funds suffered major losses, especially towards the end of last year.

According to the newspaper, Andreas Halvorsen’s Viking Global Investors LP, which manages $22 billion (nearly NOK 200 billion) in the Viking Global Equities Fund, generated a negative 4.5 percent return. The newspaper writes that this is the largest drop in the value of this fund ever in a single year.

Heavy for stock growth

But others did it much weaker than Halvorsen. Tiger Global Management, which manages about $25 billion, received a negative return of 7.4 percent, Boston-based Well Rock Capital Management saw a decline of 19.2 while California-based Light Street Capital Management received 26 percent. , according to the newspaper.

On average, hedge funds lost 11.9 percent of their value in 2021, according to industry research firm HFR.

The Wall Street Journal explains that many technology stocks listed on the Nasdaq have fallen sharply with weaker earnings. As of January 7, 36 percent of stocks on the Nasdaq Composite are down 50 percent or more from last year’s top list, according to Dow Jones market data. And it could prove even more challenging going forward, according to Greg Dowling, chief investment officer at Cincinnati investment advisory Fund Evaluation Group. The paper says high interest rates will “derail companies where profits are more hope and dream than reality”. Sunday’s forecast from Goldman Sachs indicates that there may be four rate hikes in the US this year.

But there are also exceptions among hedge fund managers. The Wall Street Journal cites New York-based Lakewood Capital Management with a $3 billion fund that has generated a 32 percent increase in value.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

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Dalila Awolowo

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