After a robust performance in the first two quarters this year, the hedge fund industry was relatively slower in Q3. Several factors, including rising inflation, supply issues in most industries, and the European energy crisis, created an unfavorable atmosphere for investment. Let’s take a look at the worst performing hedge funds in Q3 2021.(Disclaimer: the return data is based on 13Fs, so the numbers could be very different from the actual ones due to timing, other positions, etc.)
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Worst Performing Hedge Funds In Q3 2021
We have referred to the quarterly return data (from insidermonkey.com) to rank the worst performing hedge funds in Q3 2021. Following are the worst performing hedge funds in Q3 2021:
7. Kylin Management (-29.2%)
Founded in 2005, it is an employee owned hedge fund sponsor that offers services to pooled investment vehicles. Kylin Management primarily invests in Asian equity markets and typically in value stocks. The top five holdings of this hedge fund are: Jd.com, Dada Nexus, Bilibili, Ke Holdings and Sea. Ted Kang is the fund manager at Kylin Management, which is headquartered in New York.
6. Wildcat Capital Management (-30%)
Founded in 2011, this firm was formed with the purpose of managing capital for David Bonderman, who is the founding partner of TPG Capital. Wildcat Capital’s 13F portfolio was among the best performing portfolios during the first half of 2017. The top four holdings of this hedge fund are: Skillz, Rlx Technology, Goosehead Insurance, and Costar Group. Leonard A. Potter is the fund manager at Wildcat Capital Management, which is headquartered in Fort Worth, Texas.
5. Tang Capital Management (-30%)
It is a sciences-focused investment firm that has a robust track record of building successful biopharmaceutical companies. The top four holdings of this hedge fund are: Heron Therapeutics, Rocket Pharmaceuticals, Anaptysbio and Odonate Therapeutics. Kevin C. Tang is the fund manager at Tang Capital Management, which has offices in San Diego and New York.
4. Greenoaks Capital (-33.6%)
Founded in 2012, it is a global internet investment firm that makes concentrated, long-term investments in tech centric businesses. The top five holdings of this hedge fund are: Coupang, Robinhood Markets, Clover Health Investments, Sea, and Upwork. Neil Mehta is the fund manager at Greenoaks Capital, which is headquartered in San Francisco.
3. Greenspring Associates (-33.9%)
Founded in 2000, it is a global investment firm that offers commingled funds and customized partnership capabilities. Greenspring Associates focuses on Europe, Asia, North America, the Middle East, and Australia. C. Ashton Newhall and James Lim are the fund managers at Greenspring Associates, which is headquartered in Owings Mills, Md.
2. IvyRock Asset Management (-37.2%)
Founded in 2012, it is a Hong Kong-based investment management firm. This company manages Greater China public equity investments, and uses long/short and long only equity strategies. The top four holdings of this hedge fund are: Jd.com, Futu Holdings, Upwork, and Zto Express. Charles Huang is the fund manager at IvyRock Asset Management.
1. Boyu Capital (-37.2%)
Founded in 2010, it is a private equity firm that specializes in investments in China. Boyu Capital primarily invests in healthcare, media and technology, financial services, consumer, and retail sectors. The top four holdings of this hedge fund are: Pinduoduo (NOTE 12/0), Iqiyi (NOTE 3.750% 12/0), Bilibili, and Joyy (NOTE 0.750% 6/1). Xiaomeng Tong is the fund manager at Boyu Capital, which is headquartered in Beijing.
Update 1: Earlier version of the article wrongly stated the return for Long Corridor Asset Management at -35.2%. The actual return is -3%. So, we have removed Long Corridor Asset Management from our list.
Update 2: Earlier version of the article wrongly stated the return for Centerbridge Partners at -28.5%. In fact, they ended the Q3 in green. So, we have removed Centerbridge Partners from our list. Also, the article wrongly mentioned Mark T. Gallogly as their fund manager, but he retired last year.
Update 3: We have removed the mention of Infini Capital from the article following managements claim that they don't belong to this list. However, we weren't able to verify the hedge fund’s claim as the management isn't sharing their return data.