Maverick Capital, which is run by Tiger cub Lee Ainslie, is outperforming his colleagues at a time when the markets are just being brutal to hedge fund managers. The broad market selloff has plagued numerous Wall Street darlings, sending hedge fund returns plummeting. So far this year though, Maverick is only down by about 2.2%, according to two sources familiar with the matter, even though other Tiger cubs are just getting slaughtered.

Ainslie’s year-end investor letter, which was obtained and reviewed by ValueWalk, reveals the key to his success in a bear market such as this: defense, stating in the opening to the letter “Offense sells tickets, but defense wins championships”.

Maverick Fund LDC down 1.3% in Q4

In the investor letter, Ainslie said his firm’s flagship fund, the LDC, was down 1.3% for the fourth quarter although it gained 16.4% in all of 2015. The Maverick Levered fund lost 3% in the quarter but gained 28.7% in 2015, while the Maverick Long fund gained 3.7% in the fourth quarter and 6.6% in 2015. The Long Enhanced fund also did relatively well in the quarter with a 3.6% gain and an 8.9% gain in 2015, while the Select fund declined 2.2% in the fourth quarter but climbed 6.5% for the year.

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