This Year’s Winning Hedge Fund Formula Doesn’t Hedge

The long-only funds at several hedge fund firms easily beat the market — and other strategies — in the first half of the year.

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Lee Ainslie, founder of Maverick Capital. (Daniel Acker/Bloomberg)

Here’s another reminder about the dangers of shorting in a surging stock market.

A number of tech-heavy hedge funds are off to strong starts this year as they try to work off huge losses from the previous two years. But the stars of the show at several of these firms are their long-only funds, which are not only outperforming the hedge funds but are in some cases more than doubling the broader market’s gains.

Take

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