Shift from Momentum Proves Boon or Einhorn’s Greenlight Capital

David Einhorn’s Greenlight Capital hedge funds gained 8.4% in September, bringing average weighted returns for the year to 24%, the company reported. This according to a recent article in Bloomberg. “Einhorn, who has remained committed to his strategy of buying beaten-down stocks while shorting growth companies, is in the midst of a resurgence following his worst year on record,”‘ the article  reports, adding that in 2018 his firm lost 34% in its main fund. That… Read More

“No-Name” Managers Deliver Winning Pitches at Sohn

Many little-known hedge fund managers who presented pitches at this year’s Sohn Investment Conference in New York identified stocks that rose more than 30 percent over the ensuing 12 months, according to a recent article in Institutional Investor. “Sohn began introducing next wave investors in 2014, setting the stage for the hedge fund industry’s rising stars to share their actionable ideas alongside high-profile managers like billionaire Leon Cooperman. After several years of lagging hedge fund… Read More

Hedge Funds for the Masses Missed the Mark?

A recent article in Morningstar highlights the debate surrounding what it describes as the “general-public version” of hedge fund—replication funds. Ten years ago, the article explained, hedge funds were “the glamorous investment” because they were accessible only to the wealthy. Enter replication funds–developed in 2007 by two MIT professors who recreated hedge fund strategies using data from 1,600 funds over the previous 20 years. These “clones” made the hedge fund investing concept accessible to the… Read More

Hedge Funds Struggling in the Insurance Game Present Value Play

When Third Point’s Daniel Loeb and Greenlight Capital’s David Einhorn took the plunge into what a recent Barron’s article describes as the “warm waters of the reinsurance business”, the article explains, they “sought to emulate Berkshire Hathaway, where Warren Buffett has successfully combined insurance with sizable equity investments and earned outsize returns on both.” The idea was to attract investors with a tax-advantaged alternative to investing in the hedge funds themselves, while providing greater liquidity… Read More

The Best-Performing Hedge Fund in the World is up 278% This Year

Singapore-based Vanda Global Fund Ltd., up 278% through July, has delivered an average annualized return of 40% since inception and is the best-performing hedge fund in the world according to a recent article in Bloomberg (data from Eurekahedge Pte). But when the fund was launched three years ago with $24 million from friends and family, founder Chong Chin Eai “considered using his own savings to cover investors’ losses and shut up shop” as he “watched… Read More

Profile: Quant Shop Two Sigma

A recent article in Institutional Investor offers an overview of the quantitative investing powerhouse Two Sigma as well as insights on its early history from Paul Tudor Jones, an early backer of the firm. Of the firm’s co-founders David Siegel and John Overdeck, Jones recalls, “It was pretty obvious the combination was going to be a world beater…Together this mix gave us high confidence.” Today, Two Sigma manages roughly $60 billion and it one of… Read More

Hedge-Fund Exposure Signals Caution for Equities

A boost in exposure to U.S. stocks by trend-following hedge funds may be signaling a decline is in the offing. This according to a recent article in Bloomberg. The article cites comments from Sundial Capital Research Inc. founder Jason Goepfert that although equity-focused hedge funds are underweighted in stocks, trend-following funds “have suddenly seen the light, going from 25% short exposure in March to more than 50% long exposure” as of the second week in… Read More

Poker Prowess Offers and Edge in Investing

A new study suggests that hedge fund managers that are good at poker may have an edge when it comes to investment decision-making, according to an article in Bloomberg. “On one hand, there’s skill overlap,” the article argues, adding, “Both activities demand aggressiveness, accurate calculations under pressure, keen behavioral insight and shrewd risk-taking. On the other hand, poker seems like a risk-seeking activity, suggesting reckless and overconfidence managers.” The article outlines the findings of a… Read More

Investors Keep Returning to Hedge Funds

A survey of institutional investors by JPMorgan Chase found that most participants planned to “maintain or increase their overall hedge fund allocations in 2019, following a year during which 68 percent of respondents said their hedge fund portfolios underperformed.” This according to a recent article in Institutional Investor. Over half of the survey’s 227 participants—which included banks, consultants, endowments, foundations, family office, funds of funds, insurers and pensions—said they intend to maintain their hedge fund… Read More

Top Stockpicker Steps Off Hedge Fund Stage

An article in Barron’s reports that Steve Mandel–“the most successful fundamental stock picker of them all”—stepped down as portfolio manager of Lone Pine Capital in January. The article notes that Mandel, who was not well-known outside of the hedge fund industry, generated “tens of billions of dollars in gains for his clients over the past two decades and established one of the best investment track records ever.” The article includes praise from Mandel’s peers, including… Read More