Vega Asset Management USA took a hit in June with a $700 million decline, according to a July 13 report from The Wall Street Journal.

All of the company's funds all lost money in June, following losses in many of its funds in April and May, highlighting how continued low government bond yields have caused trouble for some of the world's most mature investors.

In a letter to investors, company CEO Jonathan Berg said the losses were "unprecedented in the more than eight and a half years since we launched the first fund."

Investors are now becoming more fickle, pulling funds at the first sign of trouble. That was the undoing this year of London-based Bailey Coates Asset Management, which saw assets soar from $400 million to $1.3 billion in 2004 and then ebb just as quickly, the Journal report noted.

There is also an ever-present worry among investors that mega-funds such as Vega can simply become too big, too quickly and forfeit their ability to nimbly manage money. In his letter to investors explaining the firm's June results, Berg alluded to such fears, saying that Vega was taking steps to streamline its investing style.

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