Hedge funds had a rebounding September, on the heels of no-taper announcement and some major victories in the group of activist hedge funds. After a -0.23 percent decline in August, Eurekahedge Hedge Fund Index was up 1.05 percent in last month.
Hedge funds York and Elliott post gains
James Dinan’s York Capital Ltd. gained 2.1 percent in September, pushing up gains to 9.17 percent for this year. Dinan’s other event-driven strategies did equally well, York Credit Opportunities was up 1.7 percent, whereas the European and Asian stratgies gained 1.8 percent and 2 percent respectively. Most of York Capital’s strategies were down in August.
Paul Singer’s flaghsip Elliott International Ltd. also netted a gain of 1.7 percent in September and is now up 9 percent for the year. With $3.3 billion raised in new capital, which is not deployed since AuM is still at $22.8 billion, there is potential of some big new ventures from the fund in the coming months.
Take a look at how Larry Robbins and Nelson Peltz did in September.
Jana’s activism is paying off
Probably the hedge fund that has gotten the most media attention due to its stock picks in the last couple of weeks is Barry Rosenstein’s Jana Partners. The activist hedge fund has been busily generating returns. The flagship was up 3.1 percent in September, while the long-only JANA Nirvana has gained 4.8 percent in the same period, adding the YTD return to 22 percent. Jana’s bet in Oil States International, Inc. (NYSE:OIS) and new positions in Safeway Inc. (NYSE:SWY) and Outerwall Inc (NASDAQ:OUTR) are doing really well.
Some of the most well known hedge funds in the industry however did not return so well, Pershing Square was up only 0.2 percent in the last month. Greenlight Capital was up 0.5 percent, and managed a return of 11.5 percent YTD, whereas Third Point gained 2.6 percent, pushing up total returns to 18 percent for the year.
Paulson gains across the board
Some of the credit-focused hedge funds also did well; Jon Bauer’s Contrarian Capital netted a gain of 1.99 percent in the last month, and the fund is now up 11 percent for the year. Paulson Credit Opportunities was up 0.66 percent.
John Paulson also reported an all-around great month for several of his funds. Paulson Advantage Fund gained 1.2 percent, Advantage Plus was up 1.3 percent in September. Paulson Enhanced and Paulson Recovery bagged the highest gains, posting a return of 3.14 percent and 4.17 percent in the same period. Each of these is now easily among the best performers of the year, Paulson Recovery is up 39.3 percent, whereas Paulson Enhanced is up 25.6 percent YTD.
Tiger cubs also mark profits
Robert Karr’s Joho Fund, a Tiger cub, netted a brilliant 5.6 percent gain in September. Joho manages $5.1 billion in a equity long/short strategy. Lee Ainslie’s Maverick Capital however posted a loss of 0.1 percent in last month. Rob Citrone’s global macro strategy was up 1.1 percent until September 27 of last month.
Steve Mandel’s Lone Pine Capital also gained up in last month, Lone Cypress and Lone Kauri, long/short funds, are up 14 percent through September this year, whereas Lone Cascade, a long-only program, has gained 23 percent YTD.
Tiger Ratan Capital Master Fund gained 1.3 percent in last month, taking total return up to 26 percent for the year.
Owl Creek’s Overseas Fund took up a gain of 3.3 percent and is now up 34 percent for the year. The fund manages $3.1 billion and was founded by Jeffrey Altman. Richard Perry’s $5.7 billion Perry Partners Intl. was up 1.3 percent in the last month, thus netting +12.6 percent for the year.
Steve Kuhn’s securitized credit funds were also up, Pine Rivee Fixed Income which manages $3.5 billion was up 0.65 percent whereas Pine River Liquid Mortgage gained 1.5 percent in September.