A large number of high-profile hedge funds lost money in
June. However, not nearly as much as the average fund, which
HFR says dropped 0.18 percent in June as well as for the
year-to-date through June. The S&P 500 lost more than 5.2
percent last month and 6.7 percent in the first half.
Whats more, a handful of top hedge funds made money in
June, according to investors, databases and other sources. In
fact, the best performers in June as well as for the year are
the funds managed by James Simons Renaissance
Super-secretive Medallion, the computer-driven, rapid
trading fund closed to outsiders for years, was up 17 percent
for the first half.
Renaissance Institutional Equities Fund International L.P.
(RIEF), its newer fund that had been struggling, climbed about
2.4 percent in June and was up about 3.5 percent for the first
half of the year. Sure, like many funds it has given back some
earlier gains. However, the fund, which lost money the past
three years, has beaten the S&P 500 by more than 1000 basis
points so far this year. Keep in mind it was designed to
outperform the S&P 500 index, gross of fees, by 400 to 600
basis points over a rolling three-year period with lower
The more successful Renaissance Institutional Futures Fund
(RIFF) is up about 10.6 percent for the year.
Dan Loebs Third Point Offshore Fund, which has been
leading the pack most of the year, is up 10.2 percent at the
half-way point despite dropping two percent in June. Its top
five winners in the month underscore how investors need to be
nimble and flexible. Two of his top five gains came from
unidentified shorts. Another big winner resulted from an
arbitrage position made after Novartis announced it would buy a
majority stake in Alcon. Loebs other two top-five gains
came from the debt of Icelandic Banks and an asset backed
Michael Platts London-based Bluecrest Capital
International continues to surge. The multi-strategy fund,
which plays currencies and interest rate swings, climbed nearly
10 percent for the first six months after rising about 45
percent in 2009. His Bluetrend fund (3.5 percent through June
25) and Allblue (4.9 percent) were up, but not as much.
Richard Perry, the long-short player who has morphed into an
event-driven manager, is also having another strong year.
Perry, who suffered his first down year in 2008, was up 8
percent through June.
David Teppers Palomino has given back a fair amount of
its early-year gains, losing more than 3 percent alone in June.
Even so, it is still up more than 7 percent for the year.
Otherwise, most of the most well known managers who made
money in the first half were up no more than 5 percent, still
much better than the 6.7 percent loss for the S&P. They
include Bruce Kovners Caxton Global Investments (4
percent), Alan Howards Brenan Howard Fund (1.5 percent
through June 25), Stevie Cohens SAC Capital (2.9 percent)
and Phil Falcones Harbinger Capital Portfolio Offshore
Among the worst performers in June was the volatile Bill
Hwang of Tiger Asia, who dropped 5.9 percent for the month
alone. This nearly sliced his year-to-date gains in half, 6.2
On the other hand, a number of prominent managers are down
for the year. They include Louis Bacons Moore Global (6.9
percent through June 25) and Moore Emerging Markets (6.8
percent), which is managed by former GLG superstar Greg Coffey.
(Moore Macro Managers was up about 4 percent through June 25).
Ken Griffins Citadel Wellington fund is down 2.9 percent
for the year.