Activist hedge fund Pershing Square leads the top of HSBC’s list of hedge fund performers year to date, up nearly 23 percent for the year, based on a report reviewed by ValueWalk. Other well-known names on the top performer list include Chenavari, Greywolf and AHL. Well-known names among the worst performers include Odey European, Tudor Discretionary Fund and Graham’s Global Discretionary fund which is living up to its enhanced volatility moniker.
Wild ride for Pershing Square’s Bill Ackman
It has been one wild ride for Pershing Square’s Bill Ackman, who posted year to date returns of 23.97 percent as of July 15, making his firm the top performer among all hedge funds thus far in 2014. The fund is no doubt riding on the back of its controversial Allergan, Inc. (NYSE:AGN) acquisition. In that deal, Ackman was aware of and helped plan a move by Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), and invested in Allergan based on his knowledge Valeant was about to acquire the company. By contrast, John Paulson International LTD fund, a global merger arbitrage fund, was up 6.55 percent year to date while his Enhanced LTD fund was up 11.40 percent year to date.
Pershing Square: Bill Ackman’s failures
However, Ackman has had his failures as well, including his presentation that he described as being the final nail in the coffin of Herbalife Ltd. (NYSE:HLF), a stock which he shorted. The stock price spiked from near $55 to above $67 after he gave his speech. It was trading just under $67 in afternoon trading and this price action is not included in the reported performance figures.
PIMCO’s Absolute Return Strategy IV fund up 2.76%
The report showed the PIMCO’s Absolute Return Strategy IV fund was up 2.76 percent year to date, below the average for fixed income / global funds, which was 3.87 percent. Blackrock’s Fixed Income Global Alpha Fund, managed by Tim Webb, is up 6.04 percent year to date while BlackRock, Inc. (NYSE:BLK)’s Obsidian Fund, managed by Stuart Spokek and another PIMCO competitor, is up 10.83 percent year to date.
Brevan Howard’s Commodities Strategies Fund up 6.97%
Brevan Howard’s Commodities Strategies Fund, managed by Stephane Nicolas, is up 6.97 percent year to date, almost double the average category fund performance of 3.90 percent.
Senvest Partners up 10.79%
In the equity mid to small cap funds, Senvest Partners offering managed by Richard Masael is up 10.79 percent year to date, outshining the benchmark average, which is 6.46 percent. Greenlight Capital, managed by David Einhorn, is hugging close to the category average by delivering 6.12 percent return year to date in their Offshore offering.