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.
ISSN: 2151-1845 / CDC10004H
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