Hedge Fund Holdings Not Great Investing Tool Right Now

Investors who typically take cues from leading investment managers might want to think twice, according to a recent Barron’s article that notes, “with the extreme market volatility of the last two months,” such a strategy might be “of little use.” The article explains that investment managers overseeing more than $100 million are required to report their long holdings with the SEC (in Form 13F) within 45 days after the quarter’s end and that traders look… Read More

Hedge Fund Managers’ Best Ideas Not Better Than Others

A new study of the stock-picking results of nearly 1,500 hedge funds over a 20-year period found that managers’ highest-conviction ideas are not necessarily better than any others. This according to a recent article in Bloomberg. The article cites comments from researchers at NYU and Epsilon Asset Management who found: “The focus on hedge fund stock picks at idea conferences and events is misguided and possibly counterproductive. Our analysis points to no systematic outperformance of… Read More

Historic Buying Opportunity with Some Hedge Fund Legends

Fund’s like Seth Klarman’s Baupost—normally closed to new capital—are now making an exception due to the “massive drop in asset prices catalyzed by the novel coronavirus pandemic,” which has sent them on a hunt for capital. This according to a recent article in Institutional Investor. For Baupost, this means “inviting existing investors to add to their positions and weighing the addition of new clients”—for the first time in nearly a decade. The article cites The… Read More

Hedge Fund Trader Made $2 billion in 2019 Without Clients

Although Michael Platt closed his hedge fund firm BlueCrest Capital four years ago, he continued to trade using his own wealth and managed to earn $2 billion in 2019. This according to an article in Forbes. The article reports that most of the fund’s returns, however, did not come from equity trading, but rather from “significant long fixed income positions early in 2019. During that year, the average hedge fund returned only about 10.35% (data… Read More

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