Hedge Funds Have Produced Worst Returns Then The U.S. Stock Market This Year

Matty-Sways

Demand for managed funds remains high especially among the smallest funds emerging as some of the best performers.

Funds with less than $1 billion in assets are benefiting from their more manageable portfolios.

London-based Alanda Capital Management Ltd. (manages less than $500 million) gained about 53% through November. Founder Christian Vogel-Claussen said his fund’s competitive edge comes from a concentrated portfolio built by data science and fundamental research.

“We want to be the nimble speedboat,” Mr. Vogel-Claussen said.

Requests for boutique managers rose 22% in the third quarter from a year earlier.

Accendo Capital, an activist investor with €140 million ($170 million) in assets showed returns of 41% as of November. It recently added five new investors and more than €10 million in new assets this year (Founder Henri Österlund said firm will stay below $500 million).

Caygan Capital, which manages around $500 million from London and Singapore, returned nearly 40% through November in one of its funds.

BlueBay Asset Management LLP with $219 million in assets was up 21% through November, partially from trading the debt of U.S. and other auto makers, said senior portfolio manager Geraud Charpin.

The Galton investment team at New York-based Mariner Investment Group LLC manages $868 million for a strategy that focuses on securitized products, it returned around 22% as of October.

As of Oct. 31, the most recent data available, funds with less than $250 million in assets returned 1.12%, according to research firm eVestment. That still put them ahead of the world’s 10 largest hedge funds, which were down 1.85%. Funds with more than $1 billion were down by 2%.

Over the same period, eVestment’s Hedge Fund Aggregate benchmark returned 0.74%, while the S&P 500 returned 2.77%. Including November, the S&P was up 14%.

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