Top-Ranking Hedge Funds

A recent article in Institutional Investor lists the top-earning hedge funds. The list is headed by Ray Dalio’s Bridgewater Associates, the world’s largest firm with $122 billion under management as of the beginning of 2017. George Soros ranked second, followed by Ken Griffin’s Citadel.

Soroban Capital is Among Funds Returning Client Money

Soroban Capital Partners is the latest in a “string of managers to return some client money as stock markets have rallied.” This according to a recent article in The Wall Street Journal. While the firm says it remains optimistic about the market environment, its plan to return some client money from its oldest fund will allow for the “continued flexibility to compound capital over the long run.” The article cites comments by Greg Dowling of Fund… Read More

Hedge Funds Waiting for the Next Bear Market

“No  one is more eager for the next bear market than long-short hedge funds,” reports a recent Bloomberg article. These funds, the article explains, are not designed to keep up with the bull market. “Instead,” it says, “their ability to short stocks provides shelter during the occasional bear markets and by extension less volatility and higher risk-adjusted returns than the broad market over time.” Over the last nine years, however, these funds have lagged the… Read More

One Bitcoin Hedge Fund Has Returned 25,004%

Since its launch in 2013, the Pantera Bitcoin Fund–one of the first in the world to dedicate itself to cryptocurrencies—has returned a whopping 25,004 percent to investors, with a compound annual return of about 250 percent. This according to a recent article in The New York Times. The article cites comments by the fund’s founder, Dan Morehead, who says it has been attractive because it allows investors to bypass Bitcoin exchanges such as Coinbase that… Read More

Bill Miller is Working Toward a Comeback

During his 30 plus-year tenure at Legg Mason, Bill Miller was considered a go-to manager for market beating returns, says a recent article in The Washington Post. “And his fall from grace,” it adds, “was nearly as spectacular.” Miller’s performance fell precipitously during the financial crisis of 2007-2008, the article reports, at which time “once-loyal clients took their billions and left,” and Miller left the firm. Working toward a comeback, says the Post, Miller is… Read More

For Hedge Funds, Being Like Buffett Isn’t Easy

While Warren Buffett’s track record is appealing to large private equity firms, his buy-and-hold strategy (averaging 10-20 years rather than the hedge fund industry norm of 3-5 years) can be hard for many to adopt, according to a recent Bloomberg article. “To play,” the article says, “they would need to give themselves lots of time—decades, in fact—and as near-to-permanent capital as they could muster. Ambitious buyout firms bet that by raising long-duration funds, they would finally… Read More

Hedge Fund Manager Calls Have Less Pull

A recent Bloomberg article takes a look at the influence on share prices caused by the comments of hedge fund “stars” at the industry’s three biggest annual events: Robin Hood, the Sohn Investment Conference in New York and the SkyBridge Alternatives Conference (SALT). “While the managers’ pronouncements consistently moved shares of the companies they targeted,” the article says, “their influence has been on the decline.” It outlines findings as illustrated by movement of stock price… Read More

A Trader Betting on Market Turmoil

While betting against market upset has been “one of the longest-running and most profitable trades in recent financial history,” hedge fund manager Christopher Cole is “arguing with the passionate intensity of a true believer that this market calm cannot last.” This according to a recent article in The New York Times. Cole, chief of Artemis Capital (which manages about $200 million) says, “Optically, volatility is still very low, but fear is increasing.” The article cites… Read More

The Bridgewater Culture and “Principles” of Ray Dalio

Westport, Connecticut-based Bridgewater Associates, the largest hedge fund firm in the world, was one of the first to “embrace quantitative analysis,” according to a recent article in The New York Times that  delves into the idiosyncrasies of the Bridgewater culture—both positive and negative—on what it terms a “rigid and sometimes oppressive work environment.” The article describes the strict set of rules, or “Principles,” created by CEO Ray Dalio , which include “advising employees not to… Read More

Cohen’s Comeback Revisited

In a follow-up to an article it published a few days earlier, Bloomberg recently reported that hedge fund manager Steven Cohen “is preparing to raise as much as $10 billion from outside investors in 2018 for a new fund.” The move, the article says, would represent an “extraordinary turnaround” for Cohen, particularly given that his former firm, SAC, got bad press four years ago on its guilty plea to insider trading for which it paid… Read More