The bankruptcy filing of Lehman Brothers is another blow for the hedge fund industry, though the writing has been on the wall long enough for many to have reduced their exposure to the U.S. investment bank, according to Reuters.

Legendary fund manager George Soros, who runs around $18 billion in assets, looks likely to have had his fingers burned after raising his stake in Lehman to 9.5 million shares in the second quarter, according to the news service.

British activist hedge fund Algebris will also probably have taken a hit from the fall in the share price of what was the fourth-largest U.S. investment bank, Reuters said. The hedge fund firm owned just over 4.45 million shares at end-June, Thomson Reuters data show. Algebris sold its stake this year, a spokesman told Reuters, declining to give further details.

Dealings through Lehman’s prime brokerage business were also suspended on Monday, which will have caused problems for some hedge funds, though the industry has been seeking to increase the number of banks they deal with to spread risk.

The slump in Lehman’s share price is unlikely to have benefited many hedge funds, even though they have the ability to “short” a stock — which is essentially a bet that makes them money when the share price falls.

Many had taken their bets off the table in recent weeks following the spike in bank shares in July, and shorting also becomes more costly as the share price falls, because fewer people are willing to be on the other side of the trade.

“At the end of the day, how many hedge fund managers will be shorting Lehman at $3.75, when it’s come from $70?” one fund of hedge funds manager told Reuters. “Many have been reducing or taking off their short positions over the last few weeks or so.”

Meanwhile, the slump in markets — the FTSE 100 closed 3.9 percent lower at 5,204.2 on Monday — will prove painful for long-short equity funds, most of which are positioned for rising markets.