Many brand-name hedge funds did as they are supposed to—and paid to—do in 2010, topping their hedge fund peers, with some even besting a strong stock market.
One of the biggest hedge funds was among the best: Bridgewater Associates' flagship added 38% last year, according to Market Folly. Bridgewater's rival across the Long Island Sound, Renaissance Technologies, would have done even better if not for its 44% performance fee: The firm's Medallion Fund was up 30% net of fees, anyway.
RenTech's Institutional Equities and Institutional Futures funds, which, unlike Medallion manage outside money, rose 16.5% and 22.7%, respectively.
Also in the ranks of those who beat the Standard & Poor's 500 Index (up more than 15%) last year are AQR Capital Management, up 27.3%, Passport Capital, up 18.3%, and BlueCrest Capital Management, up 16%. Third Point, whose numbers have been previously reported, also topped the broader markets by a wide margin, with its funds up between 32% and 42% last year.
Other high-profile managers had to settle for returns more in line with the S&P500. SAC Capital Advisors was up about 15%, Glenview Capital 15.3%, Millennium Management 13.3%, and Perella Weinberg Partners' Xerion Fund 12.7%. Some peers had to settle for less, with Citadel Investment Group's Kensington and Wellington funds managing industry-standard returns of about 10%, JANA Partners 8.4%, Tudor Investment Corp. 7.5% and Moore Capital Management just 3%.