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A couple that made winners | Hedge Funds/ Funds Management 2011

Bloomberg TV helped me a lot picking out the Top 4% of fund managers as Daniel Yachtman on Hedge Funds and Jim kieffer, announced Morning star stockpicker of the year made their appearance on the box, for your breakfast post, when you come back tomorrow.

Stockpicking cash equities

Various Financial stock optimism and unfortunate forays in Europe are among the reasons why hedge funds ended the year at -4.8% return

Jim Kieffer, however concentrated on growing his Artisan funds in Opportunistic Value and Small Cap value sectors and still includes good financial plays that could last 2012 even as more than job cuts and pay cuts ail Wall Street (see latest BofA estimates round up)

Daniel Yacktman(see Bloomberg print here) ended the year in the Top 4% and his decade long performance was still a Top 5%. They added $1.5 bln to their flagship YAFFX fund this year

Did you go wrong shorting?

Also, good to use high short statistics on retail chain SUPERVALU and LENNAR SHOES. Make sur eDelta Airlines is not your list of shorts or Hilton/Cendant hotles as they beat Marriott to a pulp in th e Hotels / Travel and Transportation segment. Airlines and Hotels are growing across US and European GDP /IIP growth segments especially in Asia and Latin America where growth could well exceed 20% again this year

Tiffany could be a good pick for a short but has come back already in intra day trading after a big cliff (8%, $7)at market open.

Healthcare Deal window

Meanwhile the healthcare / Hep C boom got QVT Financial a gain of 25 X their $4 mln investment in Inhibitex. The ex Deutsche Bank prop team picked up 1 million stock at $1 and more warrants at $1.46 for a stake calue of $105 mln at the $26 deal price with Bristol Myers Squibb.

QVT also holds $150 mln of Pharmasset with a deal of $10 bln to Gilead Life. However it exited one block of its holdings according to the WSJ blogs last fall on 5X gain in the then run up. Anadys got them the least of the riches with $3.70 their getaway ride, for a purchase of $2.50 per share

Remember Netflix

Netflix started a ghost ride into profit town at the end of the year and was up 14% yesterday.


Hat tip to zerohedge, here is the Top 20 Hedge Funds ( not fund Houses ) for 2011 by the HSBC Private Bank ( based on returns). Document is available here The Paulson Advantage Fund was down 56% as already repor(s)ted.


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One comment on “A couple that made winners | Hedge Funds/ Funds Management 2011

  1. Pingback: Deutsche Bank – Making money from Distressed Assets | Bank Insight | The Banking and Strategy Initiative

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