Friday, January 18, 2013

Small funds top big ones in 2012 with strong returns


Reuters reports that in tough times, small hedge funds appear to have bested many of their bigger competitors. As the industry digests another year of largely mediocre hedge fund returns, especially at many of the largest players, some investors are beginning to turn their sights toward smaller newcomers to deliver the kind of double-digit returns that made the industry famous.

Year-end performance numbers for 2012 are revealing a good number of industry stalwarts like Alan Howard's $34 billion Brevan Howard and David Einhorn's $8 billion Greenlight Capital fund that posted just single digit returns. John Paulson, another industry legend, had a mixed year with single digit gains in two funds, double digit gains in the Paulson Enhanced fund but double digit losses in the Advantage funds.

Overall, the average hedge fund in the $2 trillion industry gained just 6 percent, well below the 13 percent gain for the broader U.S. stock market…..

Find out more at http://www.reuters.com/article/2013/01/17/us-hedgefunds-newcomers-idUSBRE90G13620130117

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