Over the last few years, Paulson's company, Paulson & Co. has become one of the world's largest and most followed hedge funds. Paulson himself reportedly made more than $5 billion in 2010.
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Showing posts with label hedge fund returns. Show all posts
Showing posts with label hedge fund returns. Show all posts
6.17.2011
John Paulson Hedge Fund Loses 20%
Over the last few years, Paulson's company, Paulson & Co. has become one of the world's largest and most followed hedge funds. Paulson himself reportedly made more than $5 billion in 2010.
8.06.2009
Best Performing Hedge Fund Sectors of 2009 (YTD)
The best performing hedge fund sectors for YTD (through June 30, 2009):
#1. Latin America (LATAM) +26.05%
#2. Convertible Arbitrage +21.48%
#3. Distressed +17.16%
#4. Multiple Arbitrage +16.20%
Source: Hennessee Group
Interestingly, only the top 3 hedge fund strategies above even beat the NASDAQ's 16.36% return YTD.
Overall, the index is up 11.74% through the first half of the year, beating all the major US equity indeces, except for the NASDAQ.
#1. Latin America (LATAM) +26.05%
#2. Convertible Arbitrage +21.48%
#3. Distressed +17.16%
#4. Multiple Arbitrage +16.20%
Source: Hennessee Group
Interestingly, only the top 3 hedge fund strategies above even beat the NASDAQ's 16.36% return YTD.
Overall, the index is up 11.74% through the first half of the year, beating all the major US equity indeces, except for the NASDAQ.
4.08.2009
Hennessee Hedge Fund Returns for 2009
As hedge fund indeces have different makeups and calculations we are providing a variety of hedge fund performance charts.
Hennessee Hedge Fund Index April 2009
Hennessee Hedge Fund Index April 2009
2009 (Net) | YTD | YTD RANK | JAN | FEB | MAR |
| Hennessee Hedge Fund Index | 1.09% | - | 0.69% | -0.95% | 1.37% |
| Long/Short Equity Index | 1.01% | - | 0.68% | -1.25% | 1.60% |
| Arbitrage/Event Driven Index | 3.38% | - | 2.14% | -0.12% | 1.34% |
| Global/Macro Index | -1.36% | - | -0.82% | -1.28% | 0.74% |
| Asia-Pacific Index | -3.40% | 23 | -2.49% | -1.30% | 0.37% |
| Convertible Arbitrage Index | 9.52% | 1 | 4.15% | 1.80% | 3.30% |
| Distressed Index | -0.64% | 17 | 1.35% | -2.59% | 0.64% |
| Emerging Markets Index | 1.94% | 10 | -0.56% | -0.02% | 2.53% |
| Europe Index | -1.84% | 21 | -1.47% | -1.16% | 0.80% |
| Event Driven Index | 1.07% | 13 | 0.73% | -1.28% | 1.64% |
| Financial Equities Index | 3.68% | 6 | 2.04% | 1.38% | 0.22% |
| Fixed Income Index | 4.75% | 2 | 2.60% | 1.11% | 0.97% |
| Growth Index | 0.01% | 16 | 0.00% | -1.93% | 1.98% |
| Healthcare and Biotech Index | 0.53% | 15 | 0.95% | -3.22% | 2.89% |
| High Yield Index | 2.41% | 8 | 1.45% | 0.11% | 0.83% |
| International Index | -2.82% | 22 | -0.58% | -2.73% | 0.49% |
| Latin America Index | -0.98% | 19 | 1.96% | -2.30% | -0.60% |
| Macro Index | -0.80% | 18 | 0.47% | -1.18% | -0.08% |
| Market Neutral Index | 1.55% | 12 | 1.05% | 0.00% | 0.50% |
| Merger Arbitrage Index | 0.96% | 14 | 0.32% | 0.00% | 0.63% |
| Multiple Arbitrage Index | 4.74% | 3 | 3.64% | 0.45% | 0.61% |
| Opportunistic Index | 3.62% | 7 | 2.83% | -1.44% | 2.23% |
| Pipes/Private Financing Index | 1.58% | 11 | 0.57% | -0.44% | 1.45% |
| Short Biased Index | 1.94% | 9 | 3.78% | 3.73% | -5.31% |
| Technology Index | 3.89% | 5 | 0.47% | -0.49% | 3.91% |
| Telecom and Media Index | 4.53% | 4 | 2.35% | 1.64% | 0.67% |
| Value Index | -1.37% | 20 | -0.48% | -2.47% | 1.62% |
| Dow Jones Industrial Average | -13.30% | - | -8.84% | -11.72% | 7.73% |
| Barclays Aggregate Bond Index | 0.12% | - | -0.88% | -0.38% | 3.31% |
| MSCI EAFE (USD) Price Index | -14.64% | - | -9.88% | -10.54% | 5.87% |
| NASDAQ | -3.07% | - | -6.38% | -6.68% | 10.94% |
| Russell 2000 | -15.36% | - | -11.20% | -12.23% | 8.67% |
| S&P 500 Index | -11.67% | - | -8.57% | -10.99% | 8.54% |
Hedge Fund Returns for January and February 2009
Hedge fund returns January and February 2009
Credit Suisse/Tremont Hedge Fund Index
Credit Suisse/Tremont Hedge Fund Index
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Hedge Fund Returns Positive in March, Q1 2009
Hedge Funds Returned 1.8% in March, 2009 and were up fractionally for the first quarter of 2009.
Hedge fund returns for March were up 1.8%, led by returns from equity funds which were up more than 3% on average, according to Hedge Fund Research. Hedge funds were up .5% for the entire first quarter of 2009.
Though hedge funds certainly could use a positive month of returns, the 1.8% gain didn't come close to matching the 8% + return of the S&P 500 in March. However, the modest gain for hedge funds in Q1 was far better than the 11% decline posted by the S&P during that time.
Hedge fund returns for March were up 1.8%, led by returns from equity funds which were up more than 3% on average, according to Hedge Fund Research. Hedge funds were up .5% for the entire first quarter of 2009.
Though hedge funds certainly could use a positive month of returns, the 1.8% gain didn't come close to matching the 8% + return of the S&P 500 in March. However, the modest gain for hedge funds in Q1 was far better than the 11% decline posted by the S&P during that time.
3.18.2009
2008 Hedge Fund Redemptions - A New Record
Hedge fund redemptions for 2008 reached an all-time high as investors pulled money from performing and non-performing funds alike. In 2008 almost 1500 hedge funds shut down, almost double the previous record of 848. Additionally, half of the hedge fund closures in 2008 came in the fourth quarter with 778 hedge funds closing in Q4 2008 alone.
* We have listed several hedge fund closings before, but here is a short list:
Drake Management
Peloton Partners
Ascot Partners
Ospraie Management ($2B+)
Okumus Capital
Gordian Knot ($27B Sigma Finance Fund)
And what list of hedge fund closures would be complete without Bernard Madoff Investment Securities.
and many more can be found at hedge fund implode
* All in all, almost 15% of the hedge fund industry closed shop in 08.
* Hedge fund openings also fell. The 650+ hedge funds that opened in 2008 was the lowest since 2000.
* The number of new fund starts in Q4 2008 (56) was half of that the previous quarter (117)
Read More Here:
* We have listed several hedge fund closings before, but here is a short list:
Drake Management
Peloton Partners
Ascot Partners
Ospraie Management ($2B+)
Okumus Capital
Gordian Knot ($27B Sigma Finance Fund)
And what list of hedge fund closures would be complete without Bernard Madoff Investment Securities.
and many more can be found at hedge fund implode
* All in all, almost 15% of the hedge fund industry closed shop in 08.
* Hedge fund openings also fell. The 650+ hedge funds that opened in 2008 was the lowest since 2000.
* The number of new fund starts in Q4 2008 (56) was half of that the previous quarter (117)
Read More Here:
11.12.2008
Hedge Fund up 162% YTD
BlueGold Capital is up 29.5% in October bringing its 2008 gains to 162% as of the end of October 2008. In a month in which the average hedge fund was down more than 5% and more than 10% for the year, BlueGold Capital's returns are all the more astonishing. BlueGold Capital is a commodity derivatives hedge fund.
Hennessee Hedge Fund Index down 5.52% for October
The Hennessee Hedge Fund Index was down 5.5% in October, less than other hedge fund indeces had predicted. The Barclay Hedge Fund Index, which tracks a slightly different basket, was earlier looking for a 6% + decline in October.
The 5.5% drop in October, was actually a slowing in the pace of declines. The Heennessee Hedge Fund Index was down more than 6.2% in September and is now down more than 15% ytd.
Ironically, the biggest declines were in hedge fund strategies that are typically viewed as being more market neutral such as convertible arbitrage (though this strategy can be highly correlated if managers are net long convertibles) which lost more than 10% in October. The smallest declines came from merger arbitrage (down less than 1%) and the international index (down 4%). The long-short index was down more than 5% for the second straight month, again bringing into question why long-short hedge fund managers have returns that are so highly correlated with long only portfolios.
The 5.5% drop in October, was actually a slowing in the pace of declines. The Heennessee Hedge Fund Index was down more than 6.2% in September and is now down more than 15% ytd.
Ironically, the biggest declines were in hedge fund strategies that are typically viewed as being more market neutral such as convertible arbitrage (though this strategy can be highly correlated if managers are net long convertibles) which lost more than 10% in October. The smallest declines came from merger arbitrage (down less than 1%) and the international index (down 4%). The long-short index was down more than 5% for the second straight month, again bringing into question why long-short hedge fund managers have returns that are so highly correlated with long only portfolios.
11.10.2008
Hedging The Black Swan" Nassim Taleb
In early2007 I read the Black Swan, by Nassim Taleb. It was a fascinating book that really helps define the way you look at risk. It is a sort of counterpoint to Peter Bernstein's Against the Gods. His prior book, Fooled by Randmoness is just as illuminating. Taleb argues that unlikely scenarios are undervalued. In other words, those scenarios that have not occured before are almost completely discounted in the present. This gives a smart trader an opportunity to make small bets on a huge range of unlikely outcomes very cheaply. If even a few of these bets come true the payoff can be enormous. Picture the hedge fund that bought out of the money put options on the S&P when the DIA ( an etf representing the DOW) was near $130 in the beginning of the year. Puts November DIA 100 put would have cost just dimes. When the DIA ETF hit $85 in early November those puts would have been worth maybe 100x what you paid for them. Betting on hundreds of unlikely events is bound to pay off in the long-run, but you may suffer losses for years before hitting the jackpot. For a hedge fund manager this strategy may be a difficult, particularly preventing redemptions after three or four losing years. That big payday may come with very few assets.
Finally, after many difficult years, Nassim's hedge fund, Universa has finally been getting its time in the sun this year.
Finally, after many difficult years, Nassim's hedge fund, Universa has finally been getting its time in the sun this year.
Farallon Capital Management Posts Huge Losses
San Francisco's largest hedge fund, Farallon Capital Management's biggest hedge fund fell 24 percent this year through October which essentially ensures its first annual loss. The firm manages over $30 billion and has been selling stocks and other positions to meet investor redemptions after raising $750 million earlier this year to buy distressed securities.
Hedge Fund Performance Fees
These fees are both expressed on an annual basis.
Consider a portfolio whose benchmark is cash (this is the norm for hedge funds). In one particular year, the benchmark return is 5%, and the portfolio gives a gross return of 20%. The base fee would be 2%. The performance fee would be 20% of the portfolio's active return. 20% of 15% is 3%. Therefore, the total fee for this portfolio in the specified year would be 5%.
Why should performance fees be calculated on the gross outperformance, when the investor can never obtain the gross performance (because they will at least be paying the base fee of 2%)? Under this arrangement, the fee calculation involves "double dipping". Specifically, the performance fee is being charged on 2% of the gross return that the investor will be paying as a base fee. One way of avoiding this "double dipping" is by subtracting the base fee from the gross return before calculating the performance fee. Some canny investment managers allow the investor to choose between (for example) 2+20 with double-dipping, or 2+24 without double-dipping. This is a smart tactic, because it gives the investor some feeling that they are controlling the fee level. However, whichever way you slice it, this is a very high level of fees to pay.
Top Performing Global Equity Hedge Funds
Top Performing Global Equity Hedge Funds for the quarter ending Dec. 2007
| Global equity |
| The Prospect Fund |
| IKOS Equity Hedge Fund Class Sh. |
| TRF Master Fund (Cayman) |
| SR Global: Int'l Portfolio USD C |
| Lansdowne Global Financials USD N |
| AlphaGen Aldebaran Fund (Class A) |
| Lansdowne Global Financials Fund EURO |
| F&C Sapphire Fund |
| Threadneedle Gl Crescendo EUR |
| BlackRock Small Cap Energy Hedge Fund |
| HedgENERGY Master Fund |
| Wessex Natural Resource Fund |
| Glenrock Global Partners QP |
| Bravura 99 Fund |
| Artemis Global Hedge |
| Dexia L/S Double Alpha C Acc. |
| Warakirri Int'l Hedge Eq. Fund Publish Post |
Top Performing Debt Arbitrage Hedge Funds
Top performing debt arbitage hedge funds for the quarter ending Dec 2007.
| Debt Arbitrage funds |
| Whitebox Hedged High Yield |
| AAAsgard Fixed Income USD |
| Investcorp Fixed Inc. Rel. Value Fund |
| III Relative Value/Macro |
| JB Diversified Fixed Income Hedge Fund |
| Platinum Grove Contingent Capital Fd. |
| MKP Partners |
| Brookdale International Partners |
| Morley G7 Fixed Income Fund USD |
| Smith Breeden Mortgage Partners |
| Smith Breeden Global Funding |
| Brownstone Partners Catalyst Fund |
| Endeavour Fund I |
| Sanctum Fixed Income |
| Laurus U.S. Fund |
Top Performing Corporate Action Hedge Funds
Top Performing Corporate Action Hedge Funds for the quarter ending Dec 2007:
| Corporate action funds |
| Venus Special Situations Fund |
| Libra Fund |
| Libra Fund |
| Owl Creek II |
| Owl Creek Overseas |
| Doric Focus Fund |
| Halcyon Offshore Asset-Backed Value |
| Marwyn Neptune Fund |
| Argo Global Special Situation Fund |
| Galbraith Global Strategies Offshore |
| RenGen Shares |
| Trophy Hunter Investments |
| PilotRock Investment Partners |
| SYSTEIA EVENT DRIVEN Program |
| North Pole Capital Investments |
| North Pole Capital USD |
| Canyon Value Realization Fund |
| Bay Harbour Partners |
| Canyon Value Realization Cayman A |
| Black Diamond Arbitrage |
| MQ Special Events Fd. Direct |
| KDC Merger Arbitrage Fund |
| Mariner Partners |
| Post Total Return Fund |
| Halcyon Offshore Fund |
Some Hedge Funds Gaining in Bear Market
Hedge funds, even supposedly market neutral funds are struggling as a group. But not all hedge funds are posting negative returns. Take Bernard Drury and his Drury Capital who's fund is up 60% since January 1. Bernard is a bit of a rarity on Wall Street: a hedge fund manager who is making money instead of losing it. Faced with massive redemptions amid falling returns, many hedge funds have been forced to sell positions including stocks, bonds and other derivatives.
Some of the losers: Kenneth C. Griffinof The Citadel Investment Group and Lee Ainslie of Maverick Capital.
Some of the winners: Conquest Capital Group, R. G. Niederhoffer Capital Management, MKP Capital Management; and the John W. Henry & Company.
Read the full article:
Some of the losers: Kenneth C. Griffinof The Citadel Investment Group and Lee Ainslie of Maverick Capital.
Some of the winners: Conquest Capital Group, R. G. Niederhoffer Capital Management, MKP Capital Management; and the John W. Henry & Company.
Read the full article:
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