Balyasny Asset Management, founded by Dmitry Balyasny, managed a 1.11% return in May of this year. The flagship hedge fund, Atlas Global Investments is now up 2.75% for the year, according to monthly letter seen by ValueWalk. The independently managed portfolio, Atlas Enhanced Fund grabbed a 2.08% return in the same period and is now up 4.95% for the year.

Balyasny Asset Management

Alpha up for the year

The markets changed course in May after a reversal period in March-April that hurt Balyasny’s hedge funds. The fund’s alpha generation capability rebounded in May and is now up 2.35% YTD. Adjusting to the pressures of the tough period, Balyasny de-risked its portfolio which is working to its benefit now that the market is back up again,

“After reducing our gross exposure during the risk-off deleveraging, we were able to benefit from a more normalized environment and expect to see gross exposures continuing higher into earnings.”

Balyasny’s P&L in May

The hedge fund was able to make profits in most of its strategies;  credit was an exception, as it which ended the month with a loss. Nearly all sectors within equities were profitable with Asian industrials, energy, technology, healthcare, REITS and utilities doing the best.

The fund is currently maintaining a low net exposure, the flagship Atlas Global ended May with a net exposure of 6.9% in AGI and 9.8% in AEF. The letter conveyed the Balyasny’s intention to increase its gross exposure through the second quarter, which is currently 244% in Atlas Global and 420% in Atlas Enhanced, a lot of leverage for the average hedge fund.

Balyasny opened its funds to new money in the first quarter of 2014, the firm now manages $5 billion, up from $3.3 billion in October 2013. The hedge fund was also expanding its workforce with new recruitment across several of its strategies.