The first month of the second quarter is now edging closer towards its end, talks of how the budget sequester will be a drag on the economy and will the US suffer through the cyclical mid-year slow down will pick up steam as we go deeper into Q2.
We have already seen a bunch of hedge fund letters, some are positive that either there will be no gaping detrimental effects of the sequester, while others contest that even if there is a drag, it won’t be felt later in the year or will be easily tapered as long as the Fed keeps hinting at monetary easing. While we wait and see how this discussion plays out, lets take a look at the hedge funds which kick started April in a big way and those which have already stumbled quite low.
Bill Ackman’s Pershing Square was down 1.3 percent till April 15, year to date Pershing is up 4.6 percent. Boaz Weinstein’s Saba Capital Offshore had detracted by 2.7 percent until April 12, however seeing the curve of Saba’s returns, this is not surprising. The computer driven hedge fund goes through patterns of huge gains and wide losses continually.
Saba Capital is up a meager 0.56 percent YTD. Lansdowne Partners’s Euro Equity Fund lost a massive 4 percent until 12 April, the fund is up only 2.4 percent YTD. Lansdowne’s other funds which are much larger allocations compared to European Equity, are doing quite well.
Among the gainers of April, Dan Loeb’s flagship Third Point Offshore was up 1.2 percent until April 10 and is up 10.4 percent for the year. Third Point Ultra gained 1.8 percent in the first ten days of April and is up 15.4 percent YTD. Lee Ainsile’s Maverick Fund gained 0.76 percent through April 12 and is up 2 percent for the year. James Dinan’s York Investment Ltd was up 1.07 percent through April 12 and +4.7 percent YTD. Steve Kuhn’s Pine River Fixed Income gained 1.13 percent until April 12 and is up 7 percent YTD.
Among CTA’s, Brevan Howard Commodities Strategy was down 2.1 percent in the first five days of April. In Macro, Fortress Asia Macro has gained a massive 5 percent while Fortress Macro Fund was up 3.29 percent until April 12. According to HSBC Hedge Weekly, Diversified Global Macro strategy is up 5 percent, which is a pretty good average.
Looking at Q1 returns only, David Tepper’s $5.4 billion Palomino Fund gained 10.5 percent in the first quarter. John Paulson’s $5.4 billion Credit Opportunities was up 10.17 percent in the same period, Paulson Advantage +5.6, Advantage Plus +7.5, Paulson Enhanced +11.5, Paulson International +5.5 and Paulson Recovery posted a +8.4 percent return in the first quarter.
Jon Bauer’s Contrarion Capital gained 4.5 percent in Q1. The $2 billion Odey European gained a brilliant 15 percent in last quarter. David Einhorn’s Greenlight Capital Offshore was up 5.7 percent in Q1. Robert Citrone’s Discovery Global Opportunities returned +14.6 percent in Q1.