Some hedge funds were winners last month, including people who expected bad news and profited when it came as they expected
John Burbank’s Passport Capital is up 20 percent for the year, thanks largely because he has never been more short, one investor familiar with his thinking said.
Tiger Global Management’s Chase Coleman, one of the industry’s best performers last year, gained 2.5 percent in May, an investor said. His spokeswoman declined to comment. The $4.6 billion managed futures firm QIM saw its flagship Global fund rise more than 7 percent last month.
The firm declined to comment on its performance.
Some tail risk funds, which aim to protect investors from shock market events, recorded big wins last month when global markets sank. Boaz Weinstein’s Saba Capital saw his tail risk fund surge by 20 percent in May, though one investor said the fund is now flat for the year.
The $7.8 billion asset manager Pine River Capital Management’s tail hedge fund gained 10.8 percent, according to someone familiar with the number. Pine River declined to comment. John Paulson turned in a mixed performance. His gold fund tumbled 12.7 percent in May and is now off 22.5 percent for the year. But his credit fund rose 0.93 percent in May, and is up 5.26 percent for the year.
Meanwhile, losses in the closely-watched Paulson Advantage Plus fund were limited to only 0.6 percent. For the year, the fund is off 10 percent.
Other Paulson funds recorded losses in May but still managed to keep returns in positive territory for the year. The Enhanced fund lost 1.3 percent last month and is up 10.7 percent for the year. The Recovery fund lost 2 percent for the month, and has returned over 5 percent for the year. The firm’s merger arbitrage fund is up 5.2 percent for the year after losing 0.7 percent in May.
Check out top hedge fund managers who lost big last month
Read More: Reuters