![]() Treasuries gained 2 percent and commodities, as measured by a Bloomberg index, have slumped 22 percent. By comparison, the Standard & Poors 500 Index returned 3 percent through November, intermediate U.S. Overall, hedge funds have barely made money this year through November, and are heading for their worst performance since 2011, when they lost 5.2 percent. Its teams manage money across credit, stocks, fixed income, macro, commodities and quantitative strategies. Izzy Englanders Millennium, which runs $33 billion over 180 teams, is on track to produce its third consecutive year of double-digit returns, performance that helped the firm attract a net $4.1 billion so far this year.Ĭitadel, run by Ken Griffin, hasnt returned less than 11 percent a year since the financial crisis, when it lost 54 percent. Tom Hill, vice chairman at Blackstone, said last year he expects the fund to run several billion dollars by the end of 2016. It has fewer than 10 teams managing money now, according to a person familiar with the fund. The top performer among the multiteam funds is Blackstones Senfina Advisors, which started with stock-focused managers in 2014. Hedge funds represented almost half of the market cap of some of these companies. In 2015, a lot of the underperformance can be explained through crowding, said Stan Altshuller, chief research officer at Novus Partners, which analyzes portfolio data for hedge funds and other investors. ![]() before they tumbled in the second half of the year. and Valeant Pharmaceuticals International Inc. This years biggest losers include managers with concentrated portfolios, who piled into the same equities - Cheniere Energy Inc., Williams Cos., SunEdison Inc. Many of the big winners are firms that allocate money to multiple teams investing across a broad range of markets, with each group managing just a fraction of the total assets. Shaw Oculus $10.1 bln 10.2% macro Source: fund documents, people familiar Return Strategy Blackstone Senfina $792 mln 23% equity Citadel main funds $15 bln 12.6% multistrategy Passport Special Opportunities $430 mln 11.6% equity Millennium Partners $33 bln 11.1% multistrategy D.E. Shaw, Millennium Partners and Citadel have managed to side-step those problems and post double-digit returns. Yet a handful of multibillion-dollar firmsincluding Blackstone Group LP, D.E. A previous version of this story corrected the name of the fund in seventh paragraph.(Bloomberg) - Hedge fund managers have complained all year about a lack of liquidity and volatile markets in explaining some of the worst performance since the financial crisis. (Updates with indexes in fifth paragraph. Shaw stepped back from day-to-day management in the early 2000s, leaving the firm in the hands of an executive committee. The company later also incorporated human-run investing, and makes hedge fund, private equity and long-oriented wagers. It was one of the earliest funds to focus on using complex algorithms in trading. Shaw Plans to Increase Fees as High as 40%ĭavid E. ![]() Composite has had only one down year since its inception in 2001, while Oculus, which started in 2004, has never had any. It raised performance fees for the Oculus, Composite and Valence funds by 5 percentage points to as much as 40%. In October, the firm hiked fees for the second time since 2019, making them one of the most expensive in the industry. Shaw plans to return a substantial portion of 2022 profits to investors. Read more: Bigger Was Better in 2022: Global Hedge-Fund Industry Sees Splitĭ.E. Many of the industry’s biggest names in those strategies posted double-digit gains. The S&P 500 slid about 19% last year, while the Bloomberg US Corporate Total Return bond index fell almost 16%. Multistrategy and macro hedge funds broadly had one of their best years in 2022, as spiraling inflation and central bank actions prompted big swings in bond and equity markets. The Oculus fund, which mostly makes macro wagers, rose 20% last year, the person said, asking not to be identified discussing private information.Ī representative for the New York-based firm declined to comment. The fund is D.E Shaw’s largest and makes bets across various asset classes and geographies. The quant giant, which manages more than $60 billion, gained 24.7% in its flagship Composite fund, according to a person familiar with the matter. Shaw & Co.’s two biggest hedge funds posted returns of at least 20% last year, as volatile markets provided ample trading opportunities. ![]()
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