Tuesday, 21 October 2014
Last updated 3 hours ago
Feb 29 2012 | 4:49pm ET
Bridgewater Associates actually made more money for its clients last year than Paulson & Co. lost for its investors, a new report shows.
Bridgewater's Pure Alpha strategy earned $13.8 billion for investors in 2011, according to LCH Investments. By contrast, Paulson lost $9.6 billion, almost 8% of the total net losses for the entire hedge fund industry last year.
Paulson's woes came as most of its hedge funds fell by double digits, with its largest fund losing 51%. Pure Alpha rose by less than half that, but Bridgewater manages more than four times as much money as Paulson.
Still, 2011 was one for Bridgewater's mantle: Last year's profits account for almost 40% of the $35.8 billion in total that Pure Alpha has made for clients since its inception 37 years ago.
Other winners last year included Brevan Howard Asset Management's Master Fund, which made $3.2 billion for clients, and Baupost Group, which made $400 million. Soros Caxton Associates' Global Fund and Farallon Capital Management were essentially flat last year, while Soros Fund Management's flagship Quantum Fund lost $3.8 billion in 2011, Appaloosa Management $800 million and Moore Capital Management $300 million.
Despite those losses, Soros and Paulson remain two and three in LCH's ranking of the most profitable hedge funds, with net gains of $31.2 billion and $22.6 billion, respectively, since inception. Baupost is up $16 billion since its launch, Brevan Howard $15.7 billion, Appaloosa $13.7 billion, Caxton $13.1 billion, Moore $12.7 billion and Farallon $12.2 billion.
One new fund joined the most-profitable list after last year: SAC Capital Advisors, which has earned clients $12.2 billion since its inception in 1992.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...