Several Hedge Funds Stung by Market Turmoil – The Wall Street Journal

More hedge funds are being hit by losses on the recent market turmoil.

Traders say the pain that has afflicted top hedge funds Melvin Capital Management and Maplelane Capital in recent days is spreading, as an increasing number of stocks with significant short interest surge and as funds dealing with losses pull back their exposure to the stock market on both the long and short sides of their portfolios.

That means funds are getting hurt even on previously profitable bets on companies as those share prices fall.

Candlestick Capital Management, a roughly $3 billion Greenwich, Conn., hedge fund started by former Citadel portfolio manager Jack Woodruff, was down in the low-to-mid-teens for the year through Wednesday, said a person familiar with the fund. It was up 26% in 2020, its first year.

D1 Capital Partners, a top-performing fund in recent years founded by former Viking Global investment chief Dan Sundheim, was down about 20% for the year through Wednesday. Its substantial portfolio of investments in private companies has buffered the fund from a bigger loss. D1 managed $20 billion at the start of the year.