Hedge Fund Regal Among Stock Pickers Burned by Biotech Crash (1)

Australian money managers Regal Partners Ltd.and Pengana Capital Group Ltd. are facing increased scrutiny from investors following the recent fallout of a key biotech holding.

Pengana shares fell 9.6% on Thursday after the Australian Financial Review reported the firm has halted access to one of its funds that owns Opthea Ltd. Trading in shares of the developer of pharmaceuticals for eye diseases remains halted in Sydney trading after a disappointing medical trial.

Shares in Phil King-led Regal dropped a further 8.9% on Thursday, extending this year’s slide to 37%. The firm told investors Tuesday that it has slashed ...