WEST PALM BEACH, FL (HEDGECO.NET) – The three biggest stock hedge funds did well in April, according to new released reports. William Von Mueffling, Jim Pallotta, and Lee Ainslie, had gains of about7% in April; such return easily beat the equity market returns for the same period. Such a performance according to Barry Colvin, President of Tremont Capital Management is a reversal of the trendfrom 2003. Mr. Colvin explained that many large stock hedge funds were under performing during the same period last year.
Mr. Colvin also explained that this same strategy of picking winning stocks, and betting against stocks which are expensive relative to earnings, was the same strategy, which failed many of such managers during 2003. Last year hedge funds managed by Ainslie, Pallotta, and others were actually trailing equity benchmarks such as the S&P 500.
In 2004, Maverick Fund Ltd, one of the stock hedge funds managed by Mr. Ainslie was up 7.3% as of April 30. Raptor funds, managed by Pallotta also made gains during the same period. Cantillon World Ltd fund, managed by Mr. Von Mueffling also gained nearly 7% at the end of April. Other large stock funds such as the Viking Global Equities fund, managed by Andreas Halvorsen also made positive gains of about 8.3% during the same period, according to published reports.
However, April was a lackluster month for broader hedge funds; the average hedge fund was down 0.78% according to Hennessee Group, but such performance was still better than those posted by the broader equity indices, which posted negative returns of 1.25% during the same month. According to the CSFB/Tremont Hedge Fund Index, stock hedge funds gained an average of about 2.53% during the first 4 months of 2004.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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