Hedge Funds Performance

Rangeley Capital bets on drugs and boxes


The New Canaan firm has generated fat returns wagering on a fat-killing drug.

In late 2007, Chris DeMuth believed there would be a tremendous uptick in mergers and acquisitions. To exploit the trend, he left his job as an event-driven analyst at Mangan & McColl Partners and launched Rangeley Capital in January 2008.

The story might have ended in misery, which stocks going every which way and mergers falling apart in the turmoil of Fall and Winter 2008, but Rangeley Capital survived, dropping 15% in 2008, but coming back stronger than most of its peers.

The event-driven firm, which manages nearly $100 million, has produced a total net return of