Pelham Capital Hedge Fund Tumbles 14.4% in October Rout

(Bloomberg) -- One of Pelham Capital’s hedge funds plunged last month, joining a host of other firms that struggled to perform in October.

Pelham’s long-short equity fund, managed by founder Ross Turner, fell an estimated 14.4 percent last month, leaving it down about 12 percent so far this year, according to people with knowledge of the matter. A representative London-based Pelham declined to comment.

The global market turmoil last month wiped out many of the gains this year by the $3 trillion hedge fund industry. Funds that bet on or against equities have been hit particularly hard, as well as those that use computer-driven models to follow big trends. Some managers focused on macroeconomic trends have been able to sidestep the losses.

Turner, a former Lansdowne Partners money manager, started Pelham in 2007. The firm managed over $4 billion as of September, with the long-short fund accounting for the vast majority of its assets, according to investor documents seen by Bloomberg News.

Long-short equity funds fell 7.2 percent last month, according to a Morgan Stanley report sent on Oct. 30. Some firms saw double-digit losses such as Horseman Capital Management, whose European hedge fund declined 16 percent and is down 21 percent this year, according to an investor letter seen by Bloomberg.

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