Hedge funds continued their streak of positive returns this month. After recording a gain of +0.96% on the HFRX Global Hedge Fund Index in September, the index rose 1.2% in October, pushing up the year to date gain to +5.5%.
Hedge funds returns boost
Some major hedge funds recorded gains in the last month, as S&P 500 (INDEXSP:.INX) collected a 4.5% gain in the period, boosting its overall return for the year to +24%. Despite being embroiled in the biggest insider trading scandal of its history, Steve Cohen’s SAC Capital gained 1.3% in the last month, pushing up its returns to +15.95%, according to Reuters. The hedge fund that once managed more than $15 billion is being turned into a family office as Cohen can no longer work in an investment advisory role.
“Tiny fraction of wrongdoers does not represent the 3,000 honest men and women who have worked at the firm during the past 21 years”, said SAC Capital in a statement, after the firm pled guilty to insider trading charges and agreed to pay $1.8 billion in damages.
David Einhorn’s gain
David Einhorn’s event driven strategy posted a 1% gain in October, edging its YTD return to +13.4%. Greenlight Capital Re, Ltd. (NASDAQ:GLRE)’s gross exposure is also rising; the hedge fund was 119% long and 81% short as of Oct 31. Its highest gains would have come from the top position in Apple Inc. (NASDAQ:AAPL), which was up 9.6% in last month.
Dan Loeb’s gain
Dan Loeb’s Third Point, which is always ahead of its peers in terms of returns, is still winning so far. After netting a 1.2% return in October, Third Point Offshore Fund is now up 19.4% for the year, reports Reuters. Third Point’s gains have cooled off over the last couple of months, and while the fund continues to gain decently, it is not generating its customary outsized monthly returns. Other than significant U.S. equity exposure, Third Point also invests in European credit and equities.
Bill Ackman’s gain
Bill Ackman’s Pershing Square probably bagged the highest return last month with a +7.9% gain. The $11.4 billion hedge fund is now up 8.4% for the year. A long bet in Canadian Pacific Railway Limited (USA) (NYSE:CP) paid off as it gained nearly 16%, and a short in Herbalife Ltd. (NYSE:HLF) also proved profitable when it slumped -7% last month.
John Paulson’s gain
John Paulson’s funds have regained their winning streak. Advantage Plus fund gained 2.9%, bringing YTD return to 21% whereas Paulson Advantage returned 2% in last month and is up 15% for the year, according to Bloomberg’s Kelly Bit. Paulson Credit Opportunities gained 1.8% whereas Paulson Recovery was up 4% in October.
Jon Bauer’s gain
Contrarian Capital Fund I, the firm’s flagship, gained a handsome 2.1% in October, which is even better for a credit focused fund. Jon Bauer’s fund has gained 13.4% so far in the year. The Contrarian Emerging Markets Fund was up 7.25%, bringing up total gains to +12.6% YTD.
Lee Ainslie and Barry Rosenstein’s gain
An update from Bloomberg also shows that Maverick Capital, run by tiger cub Lee Ainslie was up 1.3% in October and is so far up 11% through the year. Eton Park returned 3.6% in October and is up 16% this year.
Among the few who lost last month is John Burbank’s Passport Global which was down 2.2%, trimming the YTD gain to +15%. Passport recently invested in 58.com Inc (NYSE:WUBA) where it bought a 11% position.