5 Biggest Hedge Fund Failures

In this article, we’re going to look through top 5 biggest hedge fund failures. To get a better understanding of how hedge funds work and why their failures are so important, as well as to see a more detailed list, head over to 10 Biggest Hedge Fund Failures.

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the biggest hedge fund failures:

5. SAC Capital

SAC Capital was run by Steve Cohen and used to have at least $50 billion assets under management at its peak. However, the peak soon began to lead towards a fall as the SEC investigated the hedge fund for years before raiding the offices of the company and several traders were charged with insider trading from 2011 to 2014, with eight former employees even being convicted, and leading to the downfall of a global hedge fund giant.

Rawpixel.com/Shutterstock.com