It’s a ‘hedge’ fund. It’s inherently very high risk, and normally people who invest in a hedge expect to lose that money.
A hedge position, properly used, is effectively an insurance policy. It’s a high-risk, high-gain bet that should be placed directly against your major holdings, so that if your real asset base takes a hit, the hedge fund - which was betting the other way - makes up the difference. For example, if half your assets are in pharmaceutical stocks, it’s a sensible hedge position to take to be that pharmas will tank. You’ve then got things set up so that no matter which way the stock moves your basic financial position is protected.
So the people who are losing their money from this hedge fund are probably making it along just fine.
” . . .normally people who invest in a hedge expect to lose that money.”
That’s a baseless claim without a word of truth in it. Multi-millionaires don’t invest with the expectation of losing money.