Reuters- Many hedge funds have had a rough ride this year, particularly in August and November, but a number have benefited from the market volatility to produce substantial gains, fund managers andothers said on Tuesday.
Some large firms, such as Everest Capital, MKP Capital Management, Harbinger Capital, Horseman Capital, posted gains of at least 30 percent and sometimes much more in some of their funds this year, highlighting the reason investors keep pouring money into the $1.9 trillion industry.
Many firms bet big in well-trod hedge fund strategies, such as going long on emerging markets or shorting financial stocks. Others won big in credit strategies, mainly on the short side. But designing a winning strategy is no slam dunk even by following directional trends, suggesting some hedge funds may be worth the ultra-high fees they charge.
London-based Horseman Capital, a $3.6 billion firm with three funds, is up about 30 percent in the year through November in its $2.6 billion global “macro” fund, said Alain Zakeossian, client relations manager.
