Returning only 6% in 2012, it was not a great year for hedge funds, particularly vis a vis the broader stock market which returned 13% for the year. However, a number of small hedge funds did have more success than their larger peers. There were a number of hedge funds with assets under $1 billion that had very good years. These funds include Mudrick Capital, Suvretta Capital Management, and Grandmaster Capital (all of which returned close to 20% or better). 400 Capital Management, which has $560 million in AUM, returned north of 30% in 2012. It should be noted that Mudrick Capital was founded by former Contrarian Capital manager. Contrarian Capital returned 24.4%.
It remains to be seen whether smaller, possibily more nimble, hedge funds will be able to outperform their peers in 2013.
Source: Arab News