Hedge funds finished the year 2020 on a high. Even though hedge funds trailed the equity indexes for most of the year, there was some consolation toward the end of the year. This seems to suggest a brighter outlook for hedge funds in 2021. However, not all hedge funds were fortunate enough to be in the green last year. If you are planning to invest in hedge funds, then to help you select some, detailed below are the ten best performing hedge funds of 2020.
Amid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More
Ten best performing hedge funds of 2020
Our list of the best performing hedge funds of 2020 is based on the data from HSBC Alternative Group report. Following are the ten best performing hedge funds of 2020:
Pinpoint China Fund Class A (52.79%)
It is an Equity Long/Short fund with a target market of Greater China equity, on/offshore. The fund has a minimum subscription requirement of $5 million. Talking about Pinpoint, it was founded in 1999 with an objective to offer “professional investment management and advisory services to global institutional investors, private banks, fund of funds, family offices and high-net-worth individuals.” The company uses top-down fundamental research methods to decide on long-term value investment opportunities.
Pershing Square Intl. Ltd. (53.86%)
It is a hedge fund based out of Grand Cayman. The fund was started in January 2005, and as per its SEC filing in June last year, it has raised $2.59 billion from 194 investors. Pershing Square Capital, which is a New York-based hedge fund managed by Bill Ackman, is the parent fund of Pershing Square Intl. Ltd. Martin Lang, Nicholas A. Botta, and Ian Goodall are its directors.
It is a sub-fund of Marshall Wace UCITS Funds PLC. Initially, the name of the fund was MW TOPS China Equities UCITS Fund, but in February 2018, it was changed to its current name. The objective of the fund is to provide investors with long-term capital appreciation by primarily investing and trading in Chinese companies.
Alanda Opportunities Fund (62.86%)
Alanda Capital focuses on TMT, Consumer and Business Services sectors. The company combines fundamental insights with proprietary data science to make its investments. Moreover, the company says it uses a “bottom-up approach, supported by catalysts, for security selection.” As per the company, it partners with late-stage, pre-IPO technology firms that complement its “core long-term growth themes.” Alanda Capital is headquartered in London.
Accendo Capital SICAV, SIF (69.28%)
Accendo Capital focuses on investing in listed Northern European companies. The company primarily focuses on companies that “drive or benefit from technological innovation.” Over the past few years, the company has won several awards. Last year, SSH Founder Tatu Ylönen sold 4.93 million shares in SSH to Accendo Capital SICAV, SIF. Following the transactions, Accendo became the biggest shareholder of SSH.
SABA Capital Offshore Fund Ltd. (70.73%)
SABA Capital was launched in 2009. It is a spin-out of one of the biggest proprietary groups in the industry, called Saba Principal Strategies, which was founded in 1998 by Boaz Weinstein at Deutsche Bank. The company focuses on three strategies – Closed-End Funds, Credit Relative Value, and Tail Hedge. SABA is registered with the SEC and CFTC, and is headquartered in New York’s historic Chrysler Building.
Belerion New Wave Fund (74.79%)
It is a long/short equity e-commerce and technology fund. As per the company, this fund uses a “flexible but disciplined approach to investing in quality business models.” The New Wave Fund aims to invest “into the acceleration of global digitalisation, while making use of the opportunities offered by the structural losers and permanently impaired companies in core sectors of focus.” Also, the fund doesn’t shy away from vesting in pre-IPO companies if they believe “there is a direct pathway to IPO.”
L1 Capital Global Opportunities Fund (74.99%)
This fund invests in structured investments, including convertible bonds. Also, it puts money in primary market transactions to ensure good returns for the investors. It follows an absolute return approach with a focus on capital preservation and multi-layered risk management. Talking of L1 Capital, it was established in 2007 and has offices in Melbourne, Sydney, Miami and London. It has four more funds – L1 Capital Long Short Fund, L1 Capital UK Residential Property Fund and L1 Capital International Fund.
Glenernie Capital Long-Short Fund (81.91%)
Glenernie Capital was incorporated on May 13, 2019, and has a registered office in London. There is not much information on the fund, beyond what is disclosed in required securities filings.
Inflection Point Investments Co. Ltd. – CLASS A (94.74%)
Inflection Point is a Limited Liability Partnership firm that operates a long-short equity fund. This fund focuses on global Emerging Growth opportunities, and is managed by Charles Elliott, Sasha Karim and Karen Hooi. The minimum investment requirement for the fund is $100,000. Launched in 2007, the main activity of the fund is to take “long positions in listed small/midcap companies positioned at the bottleneck of 3-5 key Emerging Growth Technology themes.”