Ten Years of Absolute Return: Top Funds by Strategy

By Rob Copeland, Amal Robleh

Wed May 29, 2013

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Top Strategies - Top Funds by Strategy

Sea. Sunshine. Salsa. Hedge funds. Which one is not like the other?

It turns out that all four are present and accounted for in Latin America. As the stacked rankings below show, Latin American equity funds earned 242.66% in the past ten years, an annualized return of 13.11%. Unsurprisingly, the strategy's steepest loss was 2008 when the index fell 8.14%, a small fall compared with the double digit losses suffered by U.S. Equity, Event Driven and Distressed funds.

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Top Funds by Strategy

SPM. York. Elliott. Marathon. It's no surprise that many of the names on Absolute Return's anniversary ranking of hedge fund managers in the major strategy categories is dominated by some big names. A decade of stellar returns should result in some serious fundraising, and many of the firms on this list are shining examples of money following performance.

Yet others have profited while eluding the spotlight. None of the top five commodities standouts are from Billion Dollar Club firms, with the top one, Triad Trading, holding just $43 million. A similar story holds true U.S. Equity, where the flagship from little-known Montreal firm Formula Growth leads the way.

A few below-the-radar management companies can boast more than one name on this list. AIS Capital Management, the Wilton, Conn. Quant shop, stands out with three top performers. Zazove Assocates, the Nevada convertibles specialist, has two of its own. And those without a firm interest in the tropics might have missed out on $1.46 billion Brazilian manager GAP Asset Management, which beat out far bigger names to have two of the top five multistrategy lists in Absolute Return's lifetime.

Here's to yet-undiscovered who will be on the list in another ten years.

Performance culled from Americas managers reporting performance to the HedgeFund Intelligence database for the full period between January 2003 and December 2012. Where possible, returns for the largest, or offshore, strategies are listed.

Arbitrage
Paulson & Co. Paulson Enhanced 23.41%
MMCAP Asset Management MMCAP Fund 22.34%
Glenfinnen Capital Management Highland Capital Management 10.29%
The International Investment Group IIG Trade Opportunities Fund NV 7.97%
Glazer Capital Glazer Capital Management 7.21%
     
Commodities
Treasury Management Services Triad Trading Fund 21.04%
AIS Capital Management AIS Gold Fund 16.93%
Tactical Investment Management Corp. Tactical Institutional Commodity Program 15.82%
Tactical Investment Management Corp. Tactical Multistrategy Commodity Fund 12.66%
Gabelli Asset Management Gabelli International Gold Fund 10.35%


Convertible & Equity Arbitrage
Whitebox Advisors Whitebox Concentrated Convertible Arbitrage Fund 16.74%
Zazove70
 Associates
Zazove Convertible Securities 11.69%
Brown Trout Management Chicago Capital Management 9.55%
Symphony Asset Management Symphony Rhapsody Fund 8.83%
Mohican Asset Management Mohican VCA Fund 8.27%

 
Credit
Symphony Asset Management Symphony Andante Fund 15.49%
Whitebox Advisors Whitebox Credit Arbitrage Fund 15.27%
Constellation Capital Management Andromeda Global Credit Fund 15.16%
Wexford Capital Wexford Credit Opportunities Fund 14.80%
Symphony Asset Management Symphony Adagio Fund 14.04%

 
 
Distressed Securities
York Capital Management York Credit Opportunities Fund 17.86%
Elliott Management Corp. Elliott International 13.53%
Zazove Associates Zazove High Yield Convertible Securities Fund 12.26%
Marathon Asset Management Marathon Special Opportunity Fund 11.38%
Beach Point Capital Management Beach Point Distressed Fund 8.61%

 
Event Driven
Goodman & Co. Investment Counsel Dynamic Power Hedge Fund 21.87%
Gates Capital Management ECF Value Fund 18.52%
Deltec Asset Management Deltec Special Situations Fund 17.43%
Rosseau Asset Management Rosseau 17.10%
Litespeed Management Litespeed Partners 12.32%
     
Fixed Income
Barnegat Fund Management Barnegat Fund 16.72%
Rimrock Capital Management Rimrock High Income Plus Master Fund 12.48%
EMF Financial Products EMF Fixed Income Fund 11.92%
BTS Asset Management BTS Tactical Fixed Income Fund 10.76%
Coast Asset Management Coast Value Fund I 8.92%
 
Global Emerging Market Debt/Equity
Greylock Capital Management
Greylock Global Opportunity Fund 11.99%
Marathon Capital Management Marathon Emerging Markets Fund 11.67%
Venus Capital Management Venus Relative Value Fund 10.18%
FH Interntional Asset Management FH Emerging
Markets Debt
Fund
7.90%
GLS Capital Management GLS Global Opportunities Fund 4.09%

     
Global Equity
RIMA Management Senvest Partners 25.38%
Brookfield Investment Management Wells Street Partners 22.61%
Passport Capital Passport Global Strategy 16.50%
Deltec Asset Management Deltec Emerging Market Equities 16.22%
Ravenswood Management Co. The Ravenswood Investment Co. 15.90%
 
Latin American Equity
GWI Asset Management GWI Classic FIA 32.03%
Horizon Management Horizon Growth Fund NV 29.68%
BNY Mellon ARX ARX FIA 26.81%
Bresser Administração de Recursos Bresser Fund Class Brazil Equities  26.58%
Investidor Profissional IP Investment
Fund - Value Brazil Class
24.44%
     
Macro
Balestra Capital Balestra Capital Partners 20.34%
Alee Capital Management Sirocco II Fund 19.19%
Niagara Capital Partners Friedberg Global Macro Hedge Fund 16.24%
Haidar Capital Management Haidar Jupiter International 15.73%
BNY Mellon ARX ARX Hedge FIM 15.32%
 
Managed Futures
LJM Partners LJM Managed Futures Account 24.30%
RAM Management Group RAM Fund 24.27%
Saxon Investment Corp. Excelsior Aggressive Fund 18.25%
Covenant Capital Management Covenant Capital Management
Original Program
16.83%
AIS Capital Management AIS Futures MAAP (3X-6X) Composite 16.03%
     
Mortgage Backed Securities
Structured Portfolio Management SPM Structured Servicing Holdings Master Fund 24.53%
KWK Management KWK Partners 10.43%
AlphaBridge Capital Management AlphaBridge Fixed Income Fund 9.27%
Goldstein Capital Corp. Goldstein Capital Managed Bond Portfolio 7.51%
Bonita Capital Management Kevlon Fund 7.27%
 
Multistrategy
Platinum Management Platinum Partners
Value Arbitrage Fund
19.64%
GAP Asset Management GAP Multiportfolio 17.03%
JGP Blobal Gestao De Recursos JGP Hedge 15.65%
GAP Asset Management GAP Hedge 14.87%
AIS Capital Management AIS TAAP 
Composite Fund
14.50%
     
Technology
Perceptive
Advisors
Perceptive
Life
Sciences
Fund
15.76%
Oppenheimer
Asset
Management
Advantage
Advisors
Xanthus
Fund
13.34%
DAFNA
Capital
Management
DAFNA
LifeScience
Fund
12.52%
J&W
Seligman
Seligman
Tech Spectrum Fund
11.46%
Phineus
Partners
Phineus
Voyager
11.12%
 
US Equity
Formula Growth Formula Growth Hedge Fund 22.83%
Masters Capital Management Marlin Fund 18.93%
Strand Asset Management Strand US Fund 18.24%
Osmium Partners Osmium Capital 17.30%
CSAT Capital Management CSAT Classic 15.31%