The average hedge fund rose about 20% last year, and some prominent funds—Och-Ziff Capital Management, SAC Capital Advisors and Third Point, among them—did even better. But even among top managers, returns were highly mixed.
Few, if any, did as well as Avenue Capital Group and Citadel Investment Group. The former’s International Fund soared about 66%, easily erasing its losses—some 25%—from last year. The latter’s Kensington Global Strategies Fund jumped 61.84%. It lost more than half of its value in 2008.
Capital Fund Management also bested the average hedge fund in 2009, with its Stratus Fund 2x adding 30.87%. Soros Fund Management’s Quantum Endowment Fund jumped about 28%, and D.E. Shaw Group’s Composite International Fund 21.1%. D.E. Shaw’s flagship, Oculus, did a good deal less well last year, returning only 8.7%.
Moore Capital Management’s Global Investments fund rose 20.6% last year, while King Street Capital added about 20%. Tudor Investment Corp.’s flagship BVI Global Fund was up 16.51% last year.
The returns were compiled by Dealbreaker.com and MarketWarch.
Moore, King Street and Soros were also among a select group of funds that managed to post positive returns both last year and in 2008, when the average hedge fund lost almost 20%. Others included class A shares of Brevan Howard Asset Management’s eponymous fund, which returned 20% in 2008 and 17.89% last year; Tewksbury Capital Management’s Investment Fund, which added more than 10% in 2008 and 10.45% in 2009; Balyasny Asset Management’s Atlas Global Investments, which managed a 0.5% return in 2008 and 8.64% in 2009; Caxton Associates’ Global Investment Fund, which rose 13% in 2008 and 6.15% last year; and Bridgewater Asssociates’ Pure Alpha II, which returned 9.4% in 2008 but just 2% in 2009.
Just 23% of all hedge funds were up both last year and the prior year, HedgeFund.net reports.
Others managed a somewhat more improbable feat: Making money when everyone else was losing it, and then losing it when everyone else was making it. Among them was managed futures shop Winton Capital Management, which soared 20% in 2008, but suffered its first-ever annual loss last year, dropping 4.62%.