Jason Karp's Tourbillon Capital hedge fund had a tough month

Milken Institute Jason Karp.

• Tourbillon had a rough month, dropping -6.7% in February, people familiar with the figures said. In comparison, t he Dow Jones industrial average lost 4.28%, its worst month since 2016.
• That brings year-to-date losses to about -6%. The firm has been struggling for two years.
• Other hedge funds have also struggled in a volatile market. Billionaire investor David Einhorn's Greenlight fund is down 11.4% for the year, Business Insider earlier reported .

Jason Karp's Tourbillon Capital had a tough month in February.

The firm's hedge fund dropped -6.7% in February, bringing its year-to-date losses to about -6%, people familiar with the numbers said. In comparison, t he Dow Jones industrial average lost 4.28%, its worst month since 2016 .

Tourbillon has lost money for more than two years, losing 13.8% last year and 9.2% in 2016. When reached for comment, Karp did not dispute the numbers.

Karp has been warning of "frothy speculation" in the markets and has been preaching patience in client letters.

In an October 2017 letter to investors during the rising bull market, Karp preached patience, saying the fund saw " a number of warning signs that point to the middle innings of frothy speculation ." Those comments echo earlier letters, which discussed the challenges of managing money in the bull market .

Before launching Tourbillon, Karp was a portfolio manager at Steve Cohen's SAC Capital and a co-chief investment officer at Carlson Capital.

Other hedge funds have also struggled. Billionaire investor David Einhorn's Greenlight fund is down 11.4% for the year, Business Insider earlier reported .