Several high profile hedge funds posted strong gains in
November and are outperforming the broader averages entering
the final month of the year. They are also beating the average
hedge fund, which lost 0.24 percent last month, according to
the Credit Suisse Liquid Alternative Beta Index.
|| Third Point's Daniel Loeb; Photo:
These include Ken Griffin's multistrategy funds, Kensington
and Wellington, which gained 2 percent in November. With that
gain, the two flagship funds for Griffin's firm, Citadel, are
now up 21 percent for the year. Investors say the funds
recorded gains in all strategies the funds invest in, including
equities, credit, and energy, among other areas. In addition,
Citadel's Global Equities fund gained 1.55 percent for the
month and is now up 16.7 percent this year through
For comparison, the S&P 500 was up 0.3 percent in
November and is up 12.6 percent for the year. The Nasdaq
Composite is up 15.5 percent for the year.
Dan Loeb's $5 billion Third Point Offshore Fund, managed by
his firm, Third Point, netted a 2.9 percent gain in November
and is now up 19 percent for the year. Loeb's top five winners
for the month were his high profile bet on Greek government
bonds, his activist stake in Yahoo, and long positions in auto
parts maker Delphi, managed health care provider Aveta and Ally
Financial, the former GMAC. His five biggest losers were
American International Group, an undisclosed short position,
long positions in Apple and cable giant Liberty Global, and
another undisclosed short position. Entering December, Third
Point's top positions were Yahoo, the Greek debt, AIG, gold and
Among mid-size funds, Brett Barakett's $1 billion Tremblant
Partners, managed by Tremblant Capital Group, rose 4.8 percent
in November, pushing up its full-year gain to 14.2 percent.
Tremblant Concentrated - which is similar to the flagship fund
but adds leverage to each position - was up a very strong 6.3
percent in November and 18.9 percent for the year.
November gains were driven by long positions in Green
Mountain Coffee Roasters - a favorite and successful short of
David Einhorn's Greenlight Capital - and Softbank, a Japanese
telecommunications company. Green Mountain has actually been a
big winner all year for Tremblant, which has benefitted from
aggressively trading the stock. It pared back its position in
February when the stock hit its peak and plowed back into the
stock in May after Green Mountain bottomed following its
disappointing earnings report.
Other big gains this year came from Sprint; Melko Crown
Gaming, which is a play on the Macau gambling boom; Sodastream,
which makes soda machines; Dunkin Donuts; clothing retailer Ann
Taylor; and Fifth & Pacific, the former Liz Claiborne Inc.,
which owns fashion brands Juicy Couture, Kate Spade, Jack Spade
and Lucky Brand Jeans.
Several hedge funds that are structured more conservatively
are having pretty decent years as well, even though they are
lagging the major indices.
For example, Dan Och's OZ Master Fund, managed by his
multistrategy hedge fund firm Och-Ziff Capital Management
Group, eked out a 0.46 percent gain in November, putting it up
10 percent for the year. The firm's OZ Europe Master Fund is up
8.10 percent for the year. Och Ziff disclosed it had $32
billion in assets under management as of December 1, which
reflects a net increase of approximately $200 million since
November 1, 2012.
Millennium Management founder Izzy Englander's two main
funds are also plodding along this year. His Millennium USA is
up 6.10 percent, while Millennium International is up 5.70
But his clients probably aren't complaining. Englander may
not rank among the top performers this year, but his investors
are mindful that the funds were only down a few percentage
points in 2008, when many hedge funds lost 20 percent to 40
percent that year.