One year ago
»» Cerberus Capital Management, Pine River
Capital Management and Canyon Partners, among several other
firms, hit it big on
investments in mortgage securities.
good cheer continued through the end of the year, when the
median MBS manager gained 15.15%. This year has had its
hiccups for agency specialists, but many funds
– including LibreMax Capital and PCM
Provident – have already come close to double
digit returns. The
Absolute Return Mortgage Backed Securities Index is up
3.36% through midyear, making it a slightly better than average
hedge fund strategy in 2013.
Allocators skeptical of still-bullish mortgage hedge
MBS fund performance
Five years ago
»» Jamie Dinan's
York Capital Management was rising past the $16 billion
mark on the back of strong performance.
"The returns are the most important thing," Dinan said at
the time. "Not every $10 billion-plus firm is seeking to shoot
the lights out. Maybe they're looking for 8% to 11% returns. We
still want 15% to 20% returns. We're not here to be average.
Size is not an excuse."
Shortly thereafter, York cratered to $8 billion in the wake
of a 24% loss for the flagship event-driven strategy in 2008.
It has since climbed back to $15.5 billion as of July 1, up
from $13.56 billion at the
start of the year. The flagship is up 5.19% this year
through the end of June, compared with a 6.28% rise for the
Absolute Return Event Driven Index.
Dinan called the market correctly earlier this year, saying
in January that "U.S. equity markets offer a real decent
return." The Standard & Poor's 500 Index is up 18% this
year, including a 12% gain since Dinan made the prediction.
Mary Beth Grover, an external spokeswoman for York at the
Abernathy MacGregor Group, declined to comment. See performance
for the firm's funds
here in the HedgeFund Intelligence database.
Jamie Dinan's hedge fund industry outlook
York creates COO role, taps former Merrill, Ivy
»» The cantankerous
Carl Icahn briefly became an internet star with a new blog
that showcased his trademark activist bent. "Corporate
democracy is a myth," he wrote. "Board meetings are often a
complete travesty. There is no leadership in the executive
Icahn, who turned his hedge funds into a family office in
March 2011, last
posted to the blog in 2009 and has since expanded to a new
social medium: Twitter. Since joining last month (follow him at
he has amassed more than 23,000 followers and sent out eight
messages. One representative example: "All would be swell at
Dell if Michael and the board bid farewell."
He did not respond to a tweet requesting
comment. Follow Absolute Return at
Icahn opines at Delivering Alpha I
Top Icahn deputy Alex Denner nabs Meritage seed
For sale: Icahn's $37.5 million yacht