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Attempt to move BlueMountain hedge fund fails to pay off

Once a darling of the hedge fund industry — and famous harpooner of the London Whale — BlueMountain Capital is retreating from an attempt to diversity into stocks

The Blue Mountains in Oregon, USA
The Blue Mountains in Oregon, USA Photo: Getty Images

A once rising-star hedge fund seems to have hit a snag. It might be another chapter in the age-old book Bond Managers Struggle When They Try To Do Stocks.

The back story. Last week, Affiliated Managers Group detailed its stake in hedge fund BlueMountain Capital in a filing — a stake it recently wrote down by hundreds of millions of dollars.

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