Wood's Fund Takes a Beating

The two-year-old hedge fund founded by Jonathan Wood, a former UBS AG trader, is down about 85% from its inception through July, according to a person familiar with the matter.

Mr. Wood, known as an outspoken investor, has seen his investments in several high-profile casualties of the global financial crisis sour, including Bear Stearns Cos., Countrywide Financial Corp., and U.K. bank Northern Rock PLC.

An added sting for investors: They haven't been able to cash out because they agreed not to withdraw money for as long as five years from when they signed up. Those are tight lockup terms, but Mr. Wood was able to command them because of his successful track record as a senior trader at UBS.