Hedge funds are set to book their worst month since October 2008 and one of their five worst months ever, Financial Times reports.
Fund managers lost an average 4.1% in August, with equity-focused funds losing a whopping 6.9%, the Financial Times notes, citing data from Hedge Fund Research.
That's a "staggering drop for an industry that prides itself on risk management, and charges accordingly," the newspaper writes. Strategies that focus on company selection have fared the worst, but macro-oriented managers have also lost billions of dollars.
"It has been terrible - managers have really been caught very badly," one large investor in hedge funds tells the Financial Times. "It makes you wonder what anyone has learnt at all from 2008."
UBS wants to revamp wealth management with faster information flow, decision-making. [Bloomberg]
Derivatives brokers welcome Dodd-Frank; law formalizes business model and boosts bottom line. [DealBook]
Lehman wants creditors to vote on $65 billion payout, to end bankruptcy. [Reuters]
Australia and New Zealand Banking Group in talks to buy Japan's Aozora bank. [MarketWatch]
Hurricane Irene is gone, but US financial sector hurricane continues. [Wall Street Journal]
Lehman's recent settlements indicate civil and criminal charges over collapse unlikely. [DealBook]
RBS stock jumps after analyst upgrade, lifts other bank stocks. [Bloomberg]
US lenders warm up to subprime car loans, reversing post-crisis caution. [Reuters]
Germany's HSH Nordbank to sell private equity assets to Axa Private Equity, LGT Capital Partners. [Financial Times]
FDIC challenges Bank of America's $8.5 billion mortgage bond deal with investors. [Bloomberg]
International regulator slams banks for not writing down more Greek debt. [Reuters]
Banks' corporate loan write-offs triple in Q2 2011, hit record highs. [Financial Times]
Deutsche's Jain built debt-trading powerhouse but less successful with equity trading division. [Bloomberg]