Billionaire activist investor Christopher Hohn’s hedge fund slumped 8.8% last month as the deadly coronavirus outbreak plunged markets into turmoil.
The Children’s Investment Fund, which specializes in taking large stakes in companies and agitating for changes to boost their share prices, runs a long-biased portfolio spread over a small number of stocks. Such funds tend to suffer in a widespread stock market sell-off. The S&P 500 Index suffered its biggest drop last week since the financial crisis in 2008.
The TCI fund’s February decline followed a 3.8% gain the previous month, according to people with knowledge of the matter who declined to be identified because the information is private. The fund gained 41% in 2019, its best annual performance in six years.
The fund’s struggles last month come as some other fund strategies have performed better. Tech-heavy hedge funds including Tiger Global Management and Coatue Management jumped in February, trouncing technology stocks that got clobbered in the market rout. David Meyer’s Contour Asset Management, a $1.4 billion stock hedge fund focused on technology, media and telecommunications sectors, rose about 4% in the month.
A spokesman for the London-based investment firm, which manages about $30 billion, didn’t immediately respond to emails and calls requesting comment.
This article was provided by Bloomberg News.