Dan Loeb

Dan Loeb continues his money magic as Third Point Ultra jumps up several spots to finish the year with a ballooning 34.47 percent return (31 Dec 2012). The $1.4 billion fund of Third Point LLC, takes the fourth spot in our ranking of the best performing hedge funds of the year, very close to the third winner Tilden Park Offshore Investment Fund, with a 34.89 percent return. In our previous update, Third Point Ultra was up 27.8 percent till Dec 5. The last three weeks of December added a 7 percent return to the coffers, possibly on Loeb’s winning investment in Greek debt, and has put the fund in top five of the year. We have data from the latest Hedge Weekly and have final 2012 Lyxor data from many hedge funds, which we will be posting tomorrow.

loeb hedge funds

Both Third Point’s main funds, Offshore and Ultra went under in 2011, reporting losses of -0.1 percent and -2.2 percent respectively. However they ranked among the top ten funds of 2010, with brilliant returns of 33.75 and 37.91 percent. We hope that this cyclical performance does not hold true for this year, otherwise we may see them in the bottom list of 2013. We mentioned in a previous Best and Worst Performing Hedge Funds list that BTG Pactual’s Distressed Fund’s returns through October 2012 look unbeatable, but the latest numbers have struck out even the little chance of competition that was left.

Take a look at the updated list of Top Ten funds of 2012 followed by the Bottom Five.

Top Ten Hedge Funds

1. BTG Pactual Distressed Fund:

Return: 42.03 percent (Nov 30)

Asset class/Strategy: Distressed Mortgage

Fund AUM: $237 million

Firm and Manager: BTG Pactual Global Asset Management

2.  Metacapital Mortgage Opportunities

Return: 37.8% (Oct 31)

Asset class/Strategy: Mortgage-backed arbitrage

Manager: Deepak Narula

Fund AUM: $1.5 billion

Firm: Metacapital Management

3. Tilden Park Offshore Investment Fund

Return: 34.89 percent (Nov 30)

Asset class/Strategy: Credit Long/Short

Manager: Josh Birnbaum

Fund AUM: $891 million

Firm: Tilden Park

4.  Third Point Ultra

Return: 34.47  percent (Dec 31)

Asset class/Strategy: Multi Strategy

Manager: Dan Loeb

Fund AUM: $1.39 billion

Firm: Third Point LLC

5. Pine Rive Fixed Income

Return: 33.78 percent (Dec 28)

Asset class/Strategy: Fixed income arbitrage

Manager: Steve Kuhn

Fund AUM: 3.56 billion

Firm: Pine River Capital Management

6. BlackRock, Inc. (NYSE:BLK) Obsidian

Return: 33.41 (Dec 21)

Asset class/Strategy: Fixed Income Arbitrage

Manager: Stuart Spodek

Fund AUM: $710 million

Firm: BlackRock Inc

7ABrookfield Global Real Estates Securities

Return: 33.31 percent (Nov 30)

Strategy: Equity Long/Short

Managers: Jason Baine and Bernhard Krieg

Fund AUM: $473 million

Firm: Brookfield Investment Management

 7B. Odey Absolute Return Fund

Return: 33.3 percent (Nov 30)

Asset class/Strategy: Long/Short Equity

Managers: James Hambury and Jamie Grimston

Fund AUM: $582 million

Firm: Odey Asset Management

8.CQS Directional Opportunities

Return: 32.04 percent (Nov 30)

Strategy: Multistrategy

Manager: Michael Hintze

Fund AUM: $1.49 billion

Firm: CQS

9. Chenavari Toro Capital

Return: 29.64 percent (Nov 30)

Strategy: Distressed Mortgage

Fund AUM: $227 million

Firm and Manager: Chenavari Investment Managers

10. Kinetics Fund

Return: 28.84 percent (Dec 21)

Asset class/Strategy: Long/Short Equity

Manager: Peter B. Doyle

AUM: $40 million

Firm: Horizon Kinetics

Bottom Five Hedge Funds

1. Sprott Offshore Fund

Return:  -37.73 percent (Dec 24)

Asset class/Strategy: Long/Short Equity

Manager: Eric Sprott

Firm AUM: $10 billion (July 2011)

Firm: Sprott Asset Management

2A. Conquest Macro Fund Ltd

Return: -33.16 percent (Dec 31)

Asset class/Strategy: Managed Futures

Manager: Marc Malek

AUM: $258 million

Firm: Conquest Capital Group LLC

2B.Paulson Gold Fund Ltd

Return: -33.07 percent (Dec 24)

Asset class/Strategy: Event Driven

Manager: John Paulson

Firm: Paulson & Co Inc

3. RAB Special Situation

Return: -27.52 percent (Nov 30)

Asset class/Strategy: Equity Long/Short

Manager: Phillip Richards

Fund AUM: $150 million

Firm: RAB Capital

4. Island Drive Offshore:

Return: -24.52 percent (Dec 24)

Asset class/Strategy: Equity Long/Short

Manager: John Levin

Firm AUM: $5.1 billion

Firm: Levin Capital

5. Paulson Advantage Plus

Return: -24.36 percent (Nov 30)

Asset class/Strategy: Event Driven

Manager: John Paulson

Fund AUM: $2.48 billion

Firm: Paulson & Co Inc