A report that Pequot Capital closed three hedge funds for “poor” performance is puzzling in light of internal documents obtained by HFD. Part of a Pequot Capital report shows that company estimates as of Oct. 31 for the $126 million Strategic Equity managed by Carson Levit, were actually up 10.9% net year-to-date, while a second of the defunct trio, $272 million Dynamic Strategies – managed by Steve Pigott, Peter Labon and Levit—had returned 4.4%, which was better than at least four other of its HFs. Reuters, which produced the original story on the funds’ closure, had reported the results only of Pigott’s $162 million Event Driven, which was off -1.1% through Oct. 31. Pequot officials did not respond to several requests for comment, but if poor performance were the criteria, one has to wonder how did the three funds managed by Navroze Alphonse escape hedge fund heaven? All three were allegedly in negative territory according to the same document’s Oct. 31 estimates: Healthcare was down -4.3%, Healthcare Offshore, -4.2% and Emerging Markets Healthcare, -4.8%. Their year-to-date returns were also lackluster: +1.3%, +1.2% and -11.1%, respectively. Could November results have turned it all around for these funds? Stay tuned for further updates.