World's Most Stable Hedge Funds

Below is a list of the most stable hedge funds in the world. The majority of hedge funds meeting the criteria are fixed income / arbitrage funds. The stability rating is based on 5 year returns, 5 year standard deviation of returns, and worst 3 mo. returns. All funds below had positive cumulative 5 year returns and had returns of no worse than -2% in the fund's worst 3 mo. period. Of course, just because a fund has stable, positive returns, does not necessarily indicate it is a safe investment. Recall that Bernard Madoff Securities posted positive monthly returns for 10 straight years with very low volatility. Had Madoff's fund still been active, it would have rated at or near the top of this list.

Most Stable Hedge Funds:

Fund Name	Firm Name	City	State	Stability Rating	Fund Type
Fletcher Income Arbitrage Fund	Fletcher Asset Management	New York	NY	99.45	Debt Arbitrage
Talisman Partners	Envision Capital Management	Scottsdale	AZ	99.35	Distressed Debt
Coast Enhanced Income Fund II	Coast Asset Management	Santa Monica	CA	99.15	Debt Arbitrage
Equity Income Partners	Envision Capital Management	Scottsdale	AZ	98.91	Debt/Fixed Income
AlphaBridge Fixed Income Fund	AlphaBridge	Greenwich	CT	98.69	Fixed Income
YA Global Investors	Yorkville Advisors	Jersey City	NJ	98.22	Debt Arbitrage
FAMA Sniper	FAMA Investors	Grand Cayman	GT	97.99	Emerging Markets
Kassirer Market Neutral		Toronto	ON	97.8	Convertible Arbitrage
DB Equilibria Japan Fund USD	DB Advisors	New York	NY	97.63	Absolute Return
Glazer Offshore Fund	Glazer Capital Management	New York	NY	97.38	Merger Arbitrage
Blackthorn Fund	Blackthhorn Group	Overland Park	KS	97.2	Multi Strategy
Durban Capital	Durban Capital	New York	NY	97.02	Equity Arbitrage
Loch Capital I	Loch Capital	Boston	MA	96.84	Equity
Tuscan Investments	Tuscan Group	San Francisco	CA	96.63	Equity
Winbeldon Fund	Weston Capital	Westport	CT	96.4	Global Equity
Gabelli Associates	Gabelli	Rye	NY	96.22	Equity
Blue Rock Capital Fund	Blue Rock Advisors	Minneapolis	MN	96.05	Fund of Funds
Culross Arbitrage Fund	Culross Global Management	London	UK	95.83	Fund of Funds
MKP Opportunity Offshore	MKP Capital	New York	NY	95.64	Debt Arbitrage
Haberman Value Fund	Haberman Capital	New York	NY	95.45	Equity
AlphaGen Capella Fund Limited	Gartmore Investment Services	Frankfurt	Germany	95.26	Equity
Mac Sentinel Cdn Managed Yield	Mackenzie Investments	Toronto	ON	95.01	Equity Arbitrage
Dexia Double Alpha	Dexia Asset Management	Paris	France	94.81	Fixed Income
Aktie-Ansvar Graal	AktieAnsvar	Stockholm	Sweden	94.68	Equity
BBVA & Partners Eq Arbitrage		Madrid	Spain	94.5	Equity

The above chart is based on our proprietary formula for hedge fund stability. The formula is based on 5 year returns, 5 year standard deviation of returns, and worst 3 mo. period as well as return/volatility ratio. Stable hedge funds do not necessarily indicate safety of investments. The above figures are subject to error and should not be used for making investment decisions under any circumstances.