Hutchin Hill Capital, with $1.1 billion under management, gained 1.29 percent in May, bringing the YTD return to 10.11 percent according to shareholder letters obtained by ValueWalk. It appears that most of the hedge fund’s returns were added in the month of April, as HH was up only 3.8 percent in Q1. The fund netted most of its gain in the Event Driven strategy that compounded 1.33 percent in May, Equity lost the most and was down 0.22 percent in the same period. For the year so far, the best performing strategy has been Systematic and Quantitative which returned 4.27 percent while Managed Futures has done the worst, down 0.04 percent YTD.
Updates from Hutchin Hill
Interestingly the investor letter did not have an overview of Hutchin Hill Diversified Alpha’s investments across the major strategies applied by the fund. Updates from Hutchin Hill until this March had a summary of which bets played well and what approach detracted from the fund’s performance—admittedly the fund never disclosed the identity of its holdings, so we could only speculate. However the May letter only has stats of each strategy but no such summary. Hutchin Hill is the second fund this month which has contracted the amount of data that is sent to investors. Earlier, Dan Loeb’s Third Point also removed information about the fund’s winning and losing investments in its May letter.
The firm had some team changes—Shahraab Ahmad who managed the liquid credit strategy is retiring. His portfolio will be looked over by Mark Meenan now who runs the corporate credit strategy. Ahmad was once named among the top traders of Wall Street by Fortune magazine in 2011. His talent has been compared to that of Steve Cohen’s from SAC Capital, probably not the best time to revisit that likeness. Ahmad has previously worked at JPMorgan Chase & Co. (NYSE:JPM).
Hutchin Hill investors now also have the provision to redeem more than 25 percent to 100 percent of their money by paying a fee to the fund, over any redemption period. Earlier the redemption rules were not as flexible.