KG Investments Underperforms As Alibaba Drags [Exclusive]

KG Investments Fund, the long/short equity hedge fund with $712 million of assets under management, underperformed the S&P 500 in August with a return of -2.5%.

Q2 2021 hedge fund letters, conferences and more

For the year to the end of August, the fund returned 5.3%, compared to a gain of 21.6% for the S&P 500. The fund was down 3% on the long side and up 30 basis points on the short side.

KG invests in equities, derivatives, and special situations where it believes the security is trading at a “meaningful” discount to fair value.

Since its inception in December 2008, the fund has produced an annualized return of 17.2% with a...