“June and July were difficult months and they witnessed a big reversal in the markets. The rapid unwinding of the short financials/long energy/long commodity trade has hit many managers. Those who had previously done well suddenly found themselves losing money also. Those who were relatively nimble managed to cushion the loss to some extend. Some hedge funds will undoubtedly have been hit. We expect some further pain in the energy sector and commodity area but will look to allocate money to some specialist funds in this area following any further falls.”