The Hedge Fund industry continues to exhibit robust performance, both in terms of return and asset flows, in 2021. According to eVestment’s May 2021 Hedge Fund Asset Flows report, fresh inflows has increased the AUM to a record at $3.57 trillion. The average YTD (as of May) return was just over 9%. However, this doesn’t mean that all hedge funds were able to earn a return (or above average) for their investors. Let’s take a look at the ten worst performing hedge funds.
Ten Worst Performing Hedge Funds
We have referred to the Q1 return data (from Insider Monkey) to rank the ten worst performing hedge funds. Following are the ten worst performing hedge funds:
Sabby Capital (1.7%)
Founded in 2011, it is an activist investment firm that primarily invests in the warrants of small cap healthcare firms. Sabby Capital specializes in seed, early stage and later stage investments. Hal Mintz is the fund manager at Sabby Capital, which has its headquarters in New York. The top four holdings of the firm are Spi Energy Co (PUT), Ishares Trust (PUT), Biogen (CALL), and Spdr Series Trust (PUT).
Ovata Capital Management (1%)
Founded in 2017, it is a Hong Kong-based investment manager. Its flagship product, Ovata Equity Strategies Master Fund, focuses on Asian equities. Ovata Capital has four core equity strategies – Arbitrage, Relative Value, Event, and Long / Short. James Chen is the fund manager at Ovata Capital Management, which has offices in Hong Kong, Singapore and Europe. The top four holdings of the firm are Nio, Tencent Music Entertainment Group, Alibaba Group and Iqiyi.
Stepstone Group (-0.2%)
Founded in 2007, this company offers investment services to institutional investors. Stepstone Group develops private equity portfolios using a combination of fund investments, co-investments, and secondary purchases. Jose Fernandez is the fund manager at Stepstone Group, which is headquartered in La Jolla, Calif. The top four holdings of the firm are Datadog, Duck Creek Technologies, Tenable Holdings and Jfrog.
Spruce House Investment Management (-2.4%)
Founded in 2005, it is a hedge fund that is based in New York. Zachary Sternberg and Benjamin Stein are the fund managers at Spruce House Investment Management. The top four holdings of the firm are Wayfair, Carvana, Colliers International Group and Cimpress.
Frazier Healthcare Partners (-2.6%)
Founded in 1991, this company offers growth capital to healthcare companies. It has invested in more than 170 healthcare companies, including for company creation, venture capital, growth buyouts, leveraged recapitalizations and other purposes. Alan Frazier is the fund manager at Frazier Healthcare Partners, which has its headquarters in Seattle. The top four holdings of the firm are Arcutis Biotherapeutics, Phathom Pharmaceuticals, Passage Bio and Mirum Pharmaceuticals.
Rings Capital Management (-2.7%)
Founded in 2012, it is an advisory company that is based in Chicago. Dan Juran is the fund manager at Rings Capital Management. Though the firm has generated a negative return in Q1, it has earned a return of more than 21% in the past one year. The top four holdings of the firm are S&P Global, Moodys, Microsoft and Facebook.
Sun Valley Gold (-3.3%)
Founded in 1998, this investment fund primarily invests in metals and mining industries. Peter Franklin Palmedo is the fund manager at Sun Valley Gold. The company is headquartered in Idaho, and has branch offices in the U.S., Switzerland, India, UAE, Colombia, Canada and Spain. The top four holdings of the firm are Spdr Gold Trust, Alamos Gold, Penn Virginia Gp Holdings and Galiano Gold.
Serenity Capital (-7.9%)
Founded in 2013, this company offers investment management services. Wang Chan is the fund manager at Serenity Capital. The company has its headquarters in Palo Alto, Calif. The top four holdings of the firm are New Oriental Education & Technology Group, Tal Education Group, Zto Express (Cayman) and Bright Scholar Education Holdings.