Hedge funds set for second worst year since 1990

The hedge fund industry is in line to post its second worst year since 1990, with returns only lower during 2008, according to data from Hedge Fund Research.

The average hedge fund has lost 4.37% so far this year, with the sector losing money in six out of the last seven months after being hit by excessive market volatility. In the last seven months, the sector only produced a positive return in October, with the average fund gaining 4.89%. Market uncertainty has lead investments to move in tandem with one another, reports the Financial Times. Hedge fund giant Paulson & Co has seen its flagship fund decline 46% so far this year. Meanwhile, Philippe Jabre, a former managing director at GLG, has lost 22.4% over the past eleven months.