Millennium Management and Athos Capital Ltd. are among hedge funds that have lost money after the surprise collapse of a deal involving two of China’s drugmakers, people with knowledge of the matter said.
Izzy Englander’s Millennium had a 5.1% stake in China Traditional Chinese Medicine Holdings Co., which plunged 35% Monday after regulators didn’t approve a take-private offer from China National Pharmaceutical Group Co. Athos’s stake rose to as much as 5.3% earlier this week. Both firms have since trimmed their holdings.