best and worst performing hedge funds of 2012

As the year draws to an end, it is now time to take a look at the best and worst performing hedge funds of the year. While some returns may not be the most recent, the numbers are either so big or so bad that they strike all competition out of the game. The dates of readings are listed in the table above. The best and worst performing hedge funds of 2012 we list below:

Starting with the best ones first, it does not seem like BTG Pactual’s Distressed Fund’s return of 39.91 percent will be beaten by any other fund in the next week, so this fund comes off as the obvious winner. BTG Pactual has assets exceeding $9.4 billion, and is based in London, Hong Kong and New York. Another of BTG’s funds, Global Emerging Markets and Macro Fund (GEMM), has returned 24.9 percent in this year and has been the winner of Best Global Macro Fund awards by EuroHedge in 2010.

Not a very close second, but equally brilliant profits were turned by Tilden Park Offshore Investment Fund with 34.89 percent. Following behind is Brookfield Global Real Estates Securities with 33 percent, then Pine River Fixed Income Fund and BlackRock Obsidian Fund with 32 percent. Although HSBC’s Hedge Weekly is not mentioning Odey Absolute Return, our sources confirm that the fund gained 33.3 percent through November which gives it a deserving place in the Top 10 funds of the 2012.

In the worst category, Conquest Macro takes the top spot with a painful detraction of -31 percent. Taking the second spot, RAB Special Situation Fund, jumps up many spaces since our last update and loses with a return -27.52 percent. John Paulson’s woes may not have been dissolved completely, but at least he is not the biggest loser of the year. Paulson Advantage Plus has lost -24.36 percent through November making it the third worst in the list. Beach Horizon Fund and Moore Emerging Equity L/S Fund follow with a -18 percent loss each.

Across strategies, In Convertible Arbitrage, best performance was returned by Waterstone Market Neutral with 10.24 percent (7 Dec), the worst is Jabcap Global with 2.55 percent. In Credit Long/Short category, Tilden Park Offshore takes the top spot with 34 percent and Palomino Fund gave 25 percent return, while CQS Credit Long/Short Feeder Fund, Double Haven Credit Opportunities and Gracie Credit Opportunities lost  more than -4 percent through the year.

In Distressed asset strategy, our star winner BTG Pactual Distressed Mortgage, gained 39.9 percent while Chenavari Toro Capital was up 29.6 percent. There are no big losers in the Distressed category, even Paulson Credit Opportunities turned 5.46 percent, while VR Global Offshore was up 5.8 percent (15 Nov).

Hedge Funds’ darling Equity Long/Short returns all over the spectrum as usual. Moore Emerging Equity and RAB Special Situation  falls in the worst category. Elm Ridge Value Partners lost 16 percent and Blue Sky Japan detracted by more than -14 percent. In the Best list, Odey European and Kinetics Fund both gained more than 26 percent, while SAB Overseas Partners, Senvest Partners, Tosca Class A, Omega Overseas, Marlin Fund, Horseman Global all gained in the range of 20-22 percent.

In Event Driven, the biggest gainers were Third Point Ultra with 27.8 percent, Marcato International 25 percent, KG Investment Fund with +22 percent. Pine River’s funds and BlackRock Obsidian are also the best performing event driven funds. Paulson Advantage (-16.8) and Advantage Plus (-24 percent) both fall in the worst list.

Unless mentioned otherwise in the article, the returns are through 30 November.