Hedge Funds Falter as End-of-Summer Numbers Arrive

September 1, 2014 Marcus Black Hedge Fund News

Hedge funds seem to be showing a positively lackluster performance as summer winds down and Labor Day celebrations get underway.

Richard Perry

Richard Perry

A review of how some of the biggest names in hedge funds are doing shows the answer is “not too good” while, for comparison, the broader stock market arena is already surging with 8 percent gains.

•    David Tepper, founder of Appaloosa Management, had an astounding year-in 2013-taking home $3.5 billion on a 42 percent upswing. This year is quite another story. So far his fund only posted a 2.3 percent gain through July, actually loosing 1 percent in July.
•    Richard Perry, founder of Perry Capital, is also in a bad position compared to last year. In 2013 Perry Partners gained 22 percent, but not even close this year. The fund fell 1.4 percent in August, showing a yearly gain of only 1.3 percent through August 22.
•    Trian Partners’ Nelson Peltz is doing a little better. As of August 22 his fund gained 6.6 percent, with an August gain of 1.9 percent. But compare that with a rise of 40 percent in 2013.
•    You might be wondering what ever happened to Jeff Altman and his Owl Creek fund? Last year’s performance was magical, gaining 48.6 percent. This year, not so much. What used to be among the top 2- hedge funds this year fell by 3 percent as of August 22, 2 of those percent in August alone.

Just a reminder that volatility is part and parcel of investing in hedge funds, and past performance is no guarantee of future gains, even for the best of them.

Appaloosa Management, David Tepper, Jeff Altman, Richard Perry, Trian Partners,

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