Big Hedge Funds See Disparate Returns In Oct., '12

Nov 16 2012 | 12:25pm ET

Returns at some of the world's most prominent hedge funds proved highly mixed in October.

While Pine River Capital Management continued to enjoy top-notch returns going into the final two months of the year and JAT Capital Management continued to struggle mightily, Bridgewater Associates and Moore Capital Management remained mired in mediocrity, or, in the case of Bridgewater, the world's largest hedge fund, something slightly worse than mediocrity.

First, the winners: Pine River's flagship fund is up 19% this year after rising 2% last month, Bloomberg News reports. Its $3.5 billion Fixed-Income Fund is doing even better, adding 3.2% in October and 33% on the year.

New Mountain Vantage Advisers is also ahead of the pack, up 11% on the year after a 1.4% jump last month.

Next, the losers: JAT remains among year's biggest, losing 3.6% in October to both sap the 5.8% it had gained in the previous three months and to leave it down 19% with just November and December to make up the difference. Portland-based Common Sense Investment Management doesn't face nearly so steep a climb, but is still down. Its Special Opportunity fund of hedge funds lost 2.4% last month and is down 4.2% on the year, while its Partners fund of funds lost 1% in October and 3.8% on the year.

On the bright side for Common Sense, despite a 2.6% drop last month, its Portable Alpha strategy is up 13% on the year.

Finally, the big boys: Bridgewater's Pure Alpha II is in danger of ending the year in the red if it stumbles over the next two months. The fund lost 0.8% in October, leaving it up just 0.3% on the year. Moore, on the other hand, had an up-and-down month, its flagship Global Investments falling 0.1% while its Macro Managers fund jumped 1.2%. The former is up 4.2% in 2012 and the latter 3.8%.

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