Its almost all about Apple.
Hedge funds have gotten off to a pretty good start this
year, according to the results of a half dozen or so high
profile investors that have already reported their results to
clients. Yet none of them are beating the overall market.
More importantly, the early look at performance indicates it
helped to have a big position in Apple, which surged 34 percent
in the first two months alone.
For example, Steve Cohens SAC Capital was up 1.8
percent in February and 4.5 percent for the year. This compares
with a 9 percent gain for the S&P 500 during the first two
And although he owned more than 2,100 individual issues in
his nearly $16 billion equity-oriented portfolio, his $443
million stake in Apple was his largest position entering the
David Einhorns Greenlight Capital was up 3.2 percent
in February and 6 percent for the year. As of February 29 his
largest disclosed long positions were Apple, Arkema, General
Motors, gold, Market Vectors Gold Miners and Seagate
Technology, according to Greenlight Reinsurance, the insurance
company controlled by Einhorn. It points out that investment
returns are based on the total assets in its investment
account, which are managed by DME Advisors and include the
majority of its equity capital and collected premiums.
Ken Griffins Citadel, whose funds were up more than 20
percent in 2011, is also off to a fast start. The Kensington
Fund is up 5.05 percent through February while Wellington is up
Apple accounted for $5 billion of his $44 billion equity
portfolio at the beginning of the year, according to regulatory
Dan Loebs Third Point Offshore Fund rose 1 percent in
February and 4.9 percent for the year. It noted in a monthly
report that its five top gainers for the month were Delphi,
Apple, a Medco/Express Scripts arbitrage trade, Depfa Bank
a Dublin-based German-Irish bank and Ally
Going into March, Apple was Loebs fifth largest
position. The top four were Yahoo, gold, Eksportfinans ASA
a Norwegian export lender and Delphi.
Dan Ochs OZ Master Fund, which is managed very
conservatively, generated a 1.54 percent gain in February,
putting it up 3.15 percent for the year. OZ Europe Master Fund
is up 3.84 through the first two months; OZ Asia Master Fund is
up 4.90 percent, while OZ Global Special Investments Master
Fund has risen 3.19 percent.
One major fund that is lagging the group is Alan
Howards BH Macro, which invests all of its assets in the
Brevan Howard Master Fund. Through Friday February 24
with three trading days left in the month he was up just
0.40 percent in February and 1.30 percent for the year.
But keep in mind that Howard is still structured in the same
manner that enabled him to generate a 12 percent return last
In January it made money mainly in interest rates trading
and to a lesser extent in credit trading, according to a report
to clients. It suffered small losses in foreign exchange macro
trading and in equity trading.
And Izzy Englanders Millennium, which took a lot of
risk off the table starting last August, was up just 0.55
percent in February and 2 percent for the year.