Five to watch
By Lawrence Delevingne, Rob Copeland
Tue Nov 1, 2011
Flexibility and a focus on niche strategies have powered these five young funds to stellar returns despite the market’s volatility
Hedge fund managers are more aware than ever that no
strategy is a sure thing. Market gyrations have made hash of
the relative-value strategies that rely on historic
correlations, while anyone betting on an ever-rising market has
been sinking. In this environment, winning traders have been
those pursuing ultraspecialized bets or maintaining the
flexibility to unsentimentally dump losing positions.
Each year AR's annual Funds to Watch feature profiles some
of the most talented managers of small funds, focusing on those
running strategies with less than $500 million in capital and
at least one year of performance. While finding candidates
worthy of the list has always been a difficult exercise, the
challenge has never been more formidable than in today's
baffling markets. With most funds in the AR database losing
money through September, AR had to find firms that profited
regardless of their expectations for the market's general
direction. Although several...
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