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Alternative Market Briefing

Hedge fund returns 2008: FLAT is the new up, CTAs lead return leagues

Wednesday, November 26, 2008

From Matthias Knab: In September I was chairing a two day "Nordic Alternative Investment" Forum in Stockholm. The event was well attended by hedge funds as well as investors, including executive representatives from the Norway Government Pension Fund, formerly the Government Petroleum Fund. It was there when a hedge fund marketer lighted up the room with his comment "flat is the new up!" regarding the 2008 hedge fund returns.

According to industry sources, some of best (European) equity hedged fund YTD (mid-November) performances are:

  • O'Connor Global Fundamental Market Neutral Ltd (3.75% YTD)
  • Threadneedle UK Crescendo Fund, Ltd (2.11% YTD)
  • Lansdowne UK Equity Fund (1.97% YTD)
which contrast sharply against some of the worst YTD performers:
  • SR Phoenicia Phoenicia Portfolio (-50.78% YTD)
  • KDA Capital European Fund (-48.69% YTD to October)
  • Parvus (-47.48% YTD to October)
  • Lansdowne UK Strategic Fund (-46.54% YTD)
  • Glenview Capital Partners Ltd (-42.44% YTD)
  • Atticus European Ltd (-42.08% YTD)
Among event driven funds, the performance gaps stretch from King Street Capital Ltd (3.13% YTD) to GoldenTree Offshore Fund Ltd (-27.89% YTD) and Spinnaker Global Opportunity Fund (-25.04% YTD)

Amongst the relative value funds, Bluecrest AllBlue stands out with 8.39% YTD; at the lower bottom Polygon Global Opportunities Fund (-36.67% YTD to Oct) and GCM Little Arbor Partners Ltd (-35.3......................

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