Deer Park Road Management Co.’s flagship hedge fund posted the biggest loss since its 2008 debut after wrong-way bets on a recession and mortgage bonds dented an otherwise stellar record of returns.
The firm’s STS Master fund lost 23.4% in 2023, according people familiar with the matter. Most of the declines happened in January, when it suffered its worst ever monthly drop of of 11.7%, and during the second quarter, according to an investor letter seen by Bloomberg News.