Check out hedge fund hot shot winners and loosers of 2012. How Dan Loeb, Bill Ackman Barry Rosenstein and other activist investing strategies hedge funds are among the biggest winners of positive hedge fund returnes of 2012.
Dan Loeb’s $9.3 billion AUM hedge fund Third Point has another stellar year. His Third Point Ultra fund, which uses borrowed money to boost returns, delivered a 33.6 percent gain for the year after climbing 5.4 percent in December. His Third Point Offshore fund gained 21.1 percent after rising 3.6 percent in December. Dan Loeb, who was hurt by price drop of Apple- more than made up for it with savvy bets on Greek government bonds and Yahoo.
Bill Ackman‘s $11 billion AUM hedge fund Pershing Square Capital Management that unveiled its own big short against Herbalife in late December, helping salvage an otherwise lackluster year. Pershing Square gained 5.8 percent in December to end the year up 12.4 percent according to Reuters.
Activist investing strategies hedge fund, as pursued by Ackman’s Pershing Square and Barry Rosenstein’s JANA Partners, were among the industry’s biggest winners. JANA’s Nirvana Fund gained 33.3 percent for the year while its JANA Partners fund returned 23.2.
Leon Cooperman’s hedge fund Omega Advisors delivered strong returns with a net return of 26 percent.
Steven Cohen‘s hedge fund SAC Capital Advisors, with $14 billion AUM and long known for its strong and steady returns, ended the year up 12 percent, people familiar with the portfolio said. Och-Ziff Capital Management, a $32 billion favorite with pension funds and governments, reported that its Master Fund climbed 11.18 percent last year.
Kenneth Griffin’s $14 billion AUM hedge fund Citadel told investors that its flagship Wellington multi-strategy fund gained 3.4 percent in December to end the year up 25.5 percent
David Einhorn, who has moved stock prices by simply opening his mouth, 2012 ended with lackluster returns when hishedge fund Greenlight Capital lost 2.8 percent in December.
Thanks to losses on computer maker and market darling Apple Inc and in the gold market, Einhorn’s investors saw their once healthy double-digit gain shrivel late in the year to leave Greenlight Capital with an 8.3 percent increase for 2012.
Einhorn is among a handful of particularly committed Apple investors; he mentioned the company as a favorite pick in May and has told investors that he expected the stock price to hit $700, which it did very briefly in September. In the last three months, however, the price has tumbled about 20 percent and is currently trading at around $531.
With his annual return, Einhorn lagged the broader stock market where the S&P 500 index ended the year with a 13.4 percent gain, excluding dividends. The average global hedge fund gained only 3.17 percent, according to data from Hedge Fund Research.
The disappointing end of the year performance at Greenlight Capital illustrates how even a highly influential manager like Einhorn, who has enjoyed something of a cult following in the $2 trillion hedge fund industry ever since his bearish call on Lehman Brothers in early 2008, can stumble.
For much of the year speculation mounted over which stocks Einhorn would pick or pan with General Motors and Marvell Technology Group getting the thumbs up from the manager.
But Marvell’s stock price tumbled at the end of the year after it was ordered to pay $1.17 billion to settle a patent infringement lawsuit likely costing Greenlight Capital millions in losses.