Suvretta Misses Gains After Slashing Market Exposure

The hedge fund’s positioning ahead of the market selloff in December may have hurt performance this year.

Michael Nagle/Bloomberg

Michael Nagle/Bloomberg

Suvretta Capital Management’s aggressive move to preserve capital during fourth quarter seemed savvy in December, when global stock markets were plunging. But the decision to slash its exposure may have caused the firm to miss out on a sharp rebound.

Suvretta cut its gross exposure to 60 percent in mid-October from 160 percent at the beginning of the month, an investor in the hedge fund told Institutional Investor last year.

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