Falcon Edge

Firms that traditionally have pumped big bucks into pre-IPO companies are finding little to invest in this year.

Several managers with ties to Tiger Management posted hefty losses through March.

Those managers who plowed money into private companies at a rapid clip in previous quarters have found much less to invest in of late.

A handful of hedge fund firms with investments in pre-IPO companies have not reported markedly different valuations in those holdings since the market selloff, an analysis shows. But with some firms, such as Tiger Global, portfolio performance figures may not tell the whole story.

Managers affiliated with Julian Robertson Jr. were heavily invested in the drug giant last quarter, in one of a few departures from the mainstream hedge fund crowd over the period.

The list of hedge fund managers posting sharp declines in September is growing. The latest: hedge fund legend Leon Cooperman and Pershing Square alum Mick McGuire.

As promising tech start-ups delay their initial public offerings, hedge funds increasingly move toward making private investments.

While private investments have driven big gains for some hedge funds, these investments could prove to be a double-edged sword in a liquidity event.