Another Hedge Fund Giant is Returning Investor Capital

Louis Bacon is stepping away from Moore Capital Management, which will return money to investors from three of its flagship funds “while continuing to invest on behalf of the firm’s partners,” according to an article in Bloomberg. Bacon, who the article describes as a “macro specialist”, became known for exploiting discrepancies between global interest rates and bond yields—but has found fewer opportunities to make money as central banks are once again easing monetary conditions. In… Read More

Five Questions: The Man Who Solved the Market with Gregory Zuckerman

If I asked you to name the greatest investor of all time, you would likely immediately think of Warren Buffett. And there is good reason for that. Buffett has put up 20% annual returns since 1965, which is about double what the market returned over the same period. If you didn’t name Buffett, you might think of Peter Lynch, which would be another good choice. Lynch steered the Magellan Fund to a 29% return from… Read More

Jim Simons and the Best Hedge Fund Ever

In a recent Bloomberg article, columnist Barry Ritholtz reviews the new book by Wall Street Journal reporter Greg Zuckerman, “The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution.” Ritholtz describes the book about Simons, a former math professor and code breaker for the Institute of Defense Analyses, as “compelling, filled with so many fascinating characters and new information, that it demands a review.” Author Zuckerman reportedly spent over two years researching… Read More

The Reckoning of the Hedge Fund Kings

Research from the firm HFR Inc. shows that clients have withdrawn money from stock-picking hedge funds for three years running, the longest stretch of outflows since it began tracking data in 1990, according to a recent article in The Wall Street Journal. “The reason isn’t hard to find,” the article says: “They’re no longer especially good at picking stocks.” Between 1990 and 2009, the article reports, HFR data shows that stock hedge funds outperformed the… Read More

Who Needs a Hedge Fund? Not Jeffrey Vinik

After relaunching Vinik Asset Management earlier this year (it was closed in 2013), Jeffrey Vinik found that it was much harder to raise money than he anticipated, according to a recent Bloomberg article by columnist Nir Kaissar. The problem, Kaissar explains, is that “no one needs equity hedge funds anymore,” adding, “investors can turn to low-cost funds for nearly every style of stock picking.” During the heyday of hedge funds (1990s and 2000s), Kaissar notes,… Read More

Citadel’s Ken Griffin Could Sell Some Business

Billionaire hedge fund founder Ken Griffin might be shopping a piece of his growing hedge fund business, according to a recent article in Crain’s. The article reports that the industry was surprised by recent news of Griffin being in “talks with asset management colossus Blackstone Group about one of its funds buying a minority stake in his businesses,” adding that while the talks apparently ended without a deal being cut, “a well-capitalized firm like Blackstone… Read More

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