Haidar Jupiter achieves a return of 193 percent. Overall, the industry recorded a minus of 4.25 percent. But it beats the major stock indices.
Haidar Jupiter achieves a return of 193 percent. Overall, the industry recorded a minus of 4.25 percent. But it beats the major stock indices.
The past year has been disappointing for most investors. The vast majority would have had minus 4.25 percent, after all, the broad US stock index S&P 500 lost 19 percent. Even with bonds that are considered relatively safe, losses are in the double-digit percentage range. A discount of 4.25 percent for the full spectrum of hedge funds that pursue risky strategies is very good. Hedge Fund Research (HFR), an analysis firm focused on the $3.8 trillion industry, published that performance on Tuesday.
Investment vehicles focused on emerging markets performed the worst, down 12.6 percent. Behind them are equity hedge funds, down 10.4%. After all, it has developed much better than the MSCI World Stock Index, which lost 18 percent last year.
Macro strategies were ahead
There are also clear winners in the industry: these are the so-called macro hedge funds, which adapt to certain developments in the global economy and can use a wide range of asset classes to do so. They range from stocks, bonds, derivatives and forex to commodities. According to HFR, macro hedge funds gained 9.3 percent last year.
The Haidar Jupiter fund stands out here with a performance of 193%. It is the best result ever for New York hedge fund manager Saeed Haidar since he founded his investment firm more than two decades ago. At the end of November, his hedge fund was worth $3.8 billion. Haider correctly guessed the shift in inflation and interest rates.
New York hedge fund manager Neil Berger’s Eagle’s View Capital Management also bet on the end of ultra-loose monetary policy and a tightening of central banks’ path. It also shines with performance in the triple-digit percentage range: plus $700 million in management fund at 163 percent. Citadel hedge funds, the financial group of billionaire Ken Griffin, have also managed to coax returns in the double-digit percentage range. Citadel’s hedge funds, which have $54.5 billion under management, have returned $8.5 billion in profits to investors, according to Bloomberg News. Hedge funds, which depend on certain events like corporate acquisitions, can’t keep up with minus 5 percent.