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To: Ahda who wrote (3021)	11/10/1997 10:33:00 PM
From: lorne	Respond to of 116825

Soros funds among biggest losers; Tiger makes a killing Fortunes of world's top two hedge funds vastly different in last month's crisis [LONDON] T he world's two largest hedge funds experienced strikingly different fortunes during October's market turmoil, according to independent data. Tiger, a New York-based group which is thought to be the world's No 2, was one of the sector's top performers, with its US$6.6 billion (S$10.3 billion) Jaguar fund recording a 10.9 per cent increase in net assets during October. By contrast, funds managed by George Soros, whose US$9 billion Quantum fund is the world's largest, were among the biggest losers. Net assets at Quantum fell by 10.6 per cent in October, while Quota, another Soros fund, dropped 15.7 per cent. Hedge funds are private funds that bet large sums on a small number of investment prospects and often speculate on falls and rises of stocks or currencies. Tiger and Quantum are global macro funds; they speculate on movements in markets and currencies rather than individual stocks. Such funds are generally regarded as being vulnerable to large market swings. Tiger was shielded from last month's shake-out by fund manager Julian Robertson's long-standing negative stance on Asian stocks. Jaguar has been a persistent seller of Hongkong and Japanese equities and prospered when both markets fell last month, with the Nikkei-225 Index down 8 per cent and the Hang Seng index losing 29 per cent. "Robertson had his bets on Asia in place for a long time and last month they all came off," said one fund manager. Quantum, whose dealing strategies are a closely guarded secret, is understood to have experienced substantial losses after betting the US dollar would remain strong. Last month's market turmoil is seen as a vital test for hedge funds, which suffered a similar shake-out during the 1994 Mexican crisis which led to a loss of confidence and a rash of redemptions. -- FT