Key Takeaways
- • Lone Pine Capital's Cypress hedge fund is now up just 0.6% year-to-date through September, after being up 44% through June, according to people familiar with the matter cited by Bloomberg.
- • The fund fell nearly 25% in July alone and declined roughly 30% in the third quarter, driven by wrong-way stock bets and short positions.
- • The reversal erased nearly all of the fund's first-half gains within a single quarter.
Summary
Lone Pine Capital's Cypress hedge fund has lost nearly all of the gains it had accumulated earlier in the year. According to Bloomberg, the fund was up 44% for 2026 through June, but is now up only 0.6% year-to-date through September, based on people familiar with the matter who requested anonymity to discuss fund performance.
The losses were concentrated in July, when the fund tumbled nearly 25%. Additional losses in the following months resulted in a decline of roughly 30% in the third quarter. Bloomberg attributes the drawdown to wrong-way stock bets and short wagers that moved against the portfolio.
The scale of the reversal is notable for an institutional allocator base, as a fund that posted strong first-half returns gave back almost its entire year-to-date gain within one quarter. The report does not specify fund size, redemption activity, or the specific positions responsible for the losses.
The losses were concentrated in July, when the fund tumbled nearly 25%. Additional losses in the following months resulted in a decline of roughly 30% in the third quarter. Bloomberg attributes the drawdown to wrong-way stock bets and short wagers that moved against the portfolio.
The scale of the reversal is notable for an institutional allocator base, as a fund that posted strong first-half returns gave back almost its entire year-to-date gain within one quarter. The report does not specify fund size, redemption activity, or the specific positions responsible for the losses.
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