Hedge Fund Year to Date Returns (Paulson, D.E. Shaw, SAC, & More) ~ market folly

Friday, September 5, 2008

Hedge Fund Year to Date Returns (Paulson, D.E. Shaw, SAC, & More)

Well, we recently got an update as to just how poorly hedge funds are performing year to date. Don't get me wrong, there are of course some standout performers. But, for the most part, they are taking it on the chin. So, if you are an individual investor getting your ass handed to you in this market.... you're not alone. Even some of the best and brightest in the game are right there with you. Hell, you're probably even outperforming some of these funds. Courtesy of the Wall Street Journal, we get a look at many notable hedge fund's performance year to date.

The Standout Performers

  • $35 billion Paulson & Co: +18% ytd
  • $26.3 billion Brevan Howard: +16% ytd
  • $37.1 billion D.E. Shaw: +8% ytd
  • $30.9 billion Bridgewater Associates: +6% ytd
  • $33.3 billion Och-Ziff Capital: +0.5% ytd
  • $16 billion Winston Capital: +10% ytd
  • $10 billion Caxton Associates: +5% ytd
  • $17 billion Tudor Investment Corp: +3% ytd
  • $16 billion SAC Capital: +1.5% ytd

The Not-so Standout Performers

  • $49.3 billion Highbridge/JP Morgan (Multistrat fund): -2% ytd
  • $33 billion Farallon Capital: -6% ytd
  • $23.7 billion GLG Partners: -14% ytd
  • $13 billion Eton Park Capital: -1% ytd
  • $19 billion Citadel Investment Group: -6% ytd
  • $18 billion Lone Pine Capital: -8.5% ytd
  • $12.5 billion TPG-Axon: -11% ytd
  • $8 billion Cantillon Capital: -12% ytd
  • $15 billion Atticus Capital: -25% ytd

The Slightly Mixed Bag
  • $29.5 billion Renaissance Technologies: One of their funds is -1% ytd, while their signature Medallion fund is +40% ytd
  • $26.9 billion Goldman Sachs: One of their funds is -2% ytd, while their Global Alpha fund is +17% ytd

And, according to Hedge Fund Research, Inc., hedge funds are having their worst year since 1990 (when they started tracking). They show that the average hedge fund is -3.43% ytd compared to -12.65% in the S&P500 and +1.05% in the Lehman Bros Bond Index.

So, results all across the board. Interesting to note though, that Atticus Capital is down 25% year to date. Just yesterday, there were rumors circulating that they were liquidating as I wrote about here. Tim Barakett, the founder of Atticus, came out and denied those rumors. The reason for such a large decline is pretty easy to pinpoint. As I've written about before, their portfolio had very heavy exposure to the likes of Freeport McMoran (FCX), Mastercard (MA), and NYSE Euronext (NYX); all of which have really been beaten down badly as of late. So, the rumors of liquidation weren't completely illogical, seeing as how the fund is down big this year. But, I want to reiterate again that they have denied the rumors that they were liquidating.

On another note, the algorithm master Jim Simons and his Renaissance Technologies Medallion fund are up big this year; very big. That's all I can really say about that, seeing as his entire operation is one giant quant enigma. D.E. Shaw & Co, fellow quant masters, are doing decently, up 8% year to date in this horrid tape.

Lone Pine Capital, managed by Stephen Mandel, (whom I frequently cover here on the blog), isn't having the best of years, but isn't getting slaughtered like Atticus is. Lone Pine is down a little over 8% year to date. You can view their most recent portfolio holdings as I analyzed here.

The "Commodities Corp Offspring," Paul Tudor Jones and Bruce Kovner have been playing the commodities markets smartly with their macro funds it seems. Jones' Tudor Investment Corp is up 3% ytd, while Kovner's Caxton Associates is up 8% ytd. With the wild swings in the commodities markets claiming the life of the Ospraie fund, I'm sure Tudor Jones and Kovner are happy to turn a profit. This year has been one wild ride, to say the least.

And, lastly, John Paulson is still kicking ass and taking names; up 18% year to date. You'll remember that Paulson correctly pegged the subprime crisis last year and profited handsomely from it.

So, there you have it. See how you stack up against some of the most revered names in the game. Some are dominating, while others are getting dominated. Welcome to the bear market.

Source: WSJ

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