EFTA01009300.pdf

From: Richard Kahn To: Jeffrey Epstein <[email protected]> Subject: Fwd: (BN) Hedge Funds Returning 20% Show All Is Not Lost for Smart Money, Table below Date: Sat, 05 Jan 2019 19:15:35 +0000 Richard Kahn HBRK Associates Inc. 575 Lexington Avenue, 4th Floor New York, NY 10022 Begin forwarded message: From: David Fiszel Subject: (BN) Hedge Funds Returning 20% Show All Is Not Lost for Smart Money, Table below Date: January 5, 2019 at 2:13:44 PM EST To: Richard Kahn Hedge Funds Returning 20% Show All Is Not Lost for Smart Money. By Shelly Hagan and Melissa Karsh • SoMa Equity, Cadian Capital won with wagers on tech firms • Some marquee managers posted biggest losses in many years (Bloomberg) -- As the dust settles on a troubled year for hedge funds, some managers escaped the wreckage and even thrived. SoMa Equity Partners, a $1.2 billion long-short equity fund, rose about 20 percent in 2018, according to an investor document seen by Bloomberg. The $1.5 billion Cadian Capital Management notched a similar gain, according to a person familiar with the matter. And Luxor Capital Group, a $3.2 billion event-driven fund, posted a robust return as well, another person said. EFTA01009300 These funds were bright spots in an otherwise bleak year for the industry. Hedge funds on average lost 6.7 percent, according to the HFRX Global Hedge Fund Index, more than the S&P 500 Index with reinvested dividends. The managers who came out on top made smart bets on media, technology and energy companies and benefited from short positions in Europe and Asia. Read about how Crispin Odey's bearish bets paid off SoMa Equity made money on small-cap firms like Coupa Software Inc. and CyberArk Software Ltd. At mid- year, SoMa reduced its exposure to high-growth names in software and pivoted toward media and telecom. Cadian Capital benefited from long wagers on IAC/InterActiveCorp, Tableau Software Inc. and Palo Alto Networks Inc., while Luxor Capital won in December with short positions in European and Japanese credit as well as tech stocks. Read more about a Renaissance fund's gain in 2018 While some of the biggest names in the business like David Einhorn and Dan Loeb posted their worst performance in many years, a number of nimble smaller funds had cause to celebrate. The $53 million Crescat Capital climbed 40.5 percent in its global macro hedge fund and 32 percent in its long-short hedge fund as its short China wager came to fruition, according to an investor document. And Riposte Capital, a $100 million equity long-short firm, jumped 15 percent in its global opportunity fund, benefiting from positions in the energy sector. "Chinese equity shorts in both funds and our China currency short in the global macro fund were big contributors to performance in 2018," said Kevin Smith, founder of Crescat. "We also profited significantly from short positions in overvalued U.S. equities and from a nascent rise in deeply undervalued precious metals in the fourth quarter." Representatives for the hedge funds declined to comment or didn't return emails. Here's a list of some winners and losers in 2018: Fund Name 2018 Return (%) Strategy Odey European 53 Macro Crescat Global Macro 40.5 Macro Crescat Long/Short 32.1 US Equity SoMa Partners 20 US Equity Cadian 19.8 US Equity Mudrick Capital 16.2 Distressed Riposte Global Opportunity 15 US Equity Totem Point Master 14.2 US Equity Luxor Capital Partners Offshore 13.6 Event-driven Renaissance Institutional Equities 8.5 Equity Heard Opportunity 8 US Equity KL Special Opportunities 6.7 Event-driven CIAM Opportunities 6.5 Event-driven Voce Capital 6 Activist Honeycomb Master 5.2 US Equity Brahman Capital 2.4 US Equity Marshall Wace Eureka 0.6 US Equity EFTA01009301 Pershing Square Holdings -0.7 Activist Coatue Qualified -1.2 US Equity OZ Master -1.3 Multi-strategy Third Point Offshore -11 Event-driven Greenlight Capital -34 US Equity Sources: Bloomberg reporting (Updates chart with returns for Mudrick, Totem Point and Brahman Capital.) --With assistance from Simone Foxman, Katherine Burton, Nishant Kumar and Hema Parmar. To contact the reporters on this story: Shelly Hagan in New York at [email protected]; Melissa Karsh in New York at [email protected] To contact the editors responsible for this story: Margaret Collins at [email protected] Vincent Bielski, Alan Mirabella Recommended Stories Renaissance Fund Gains 8.5% in 2018 After Predicting Turbulence In Awful Year for Hedge Funds, Scaramucci's SkyBridge Made Money ETF Trends: Hedge Fund Manager Steve Cohen Predicts Next Bear Market Yahoo! Finance: In Awful Year for Hedge Funds Scaramucci's SkyBridge Made Money Top Hedge Funds Rack Up $2 Billion in Losses on Apple Holdings Brevan Howard's Payouts to Members Shrink 40% as Fee Income Dips People Kevin C Smith (Crescat Portfolio Management LLC) David Michael Einhom (Greenlight Capital Inc) Daniel S Loeb "Dan" (Third Point LLC) Topics Business News (BUSINESS) Mutual Funds, Hedge Funds, Sovereign Wealth Funds and Trusts (ALLFND) Bus, Eco Govt News (BIZNEWS) Bloomberg News Scoops (BNSCOOP) Bloomberg News Exclusives (EXCLUSIVE) Financials (FIN) Click here to view story in Bloomberg This e-mail and any file(s) transmitted with it may contain confidential and/or privileged information. Nothing contained in this e- mail and/or any file(s) transmitted with it constitutes a solicitation or an offer to buy or sell any securities. Use or disclosure of this e-mail or any such files by anyone other than a designated addressee is unauthorized. If you are not an intended recipient (or have received this email in error), please notify the sender immediately and delete this e-mail without making a copy. If this e-mail is misdirected, Honeycomb Asset Management,. and its affiliates do not waive confidentiality or any privilege. EFTA01009302