Blog

Performances of the first half-year of 2016

10 July 2016
Unsuccessfully finished 2015, we began a year of 2016.  We have made some corrections in the strategies of our hedge fund EAM Stocks&Derivatives Strategies S.P. That is why we practically closed the drawdown and got +6% from beginning of the year. Analyzing the trading methods, I concluded that good luck has as decisive contribution as the trading strategy (see the article Three Skills and Good Luck). The strategy can’t work equally well all the time because of the market changes and has necessity  to implement corrections in accordance with new market conditions.  Asset manager can have  professional skills but if there is no luck, the curve of income will be flat.
In the past six months, the hardest month was June.  BREXIT made us nervous.  Our option spreads have moved apart.  InteractiveBrokers  showed  changes in the statements from -9% to +8%.  In conclusion we got profit of +4.98% in June.

Russian hedge funds

From Russian hedge funds, I research only the hedge fund Kvadrat. It has got profit of 6.7% from beginning of the year. It trades the option strategies just like our hedge fund. In my opinion the hedge fund Kvadrat is the best from Russian hedge funds. Unfortunately others Russian hedge funds don’t give any information about their performances.  The Russian agency SPEAR’s doesn’t make a ranking with a period of no more than one month.

Foreign hedge funds

I want to share with you the performances of the foreign hedge funds in the HedgeCo.net ranking. There are TOP 10 hedge funds for 3 years return in the table below.

Fund Name

Fund Style

3 Year Return

Geneva Global Macro

Inception: Mar 2014  /  Fund Styles:  Long/Short  & Global Macro
Location: Charlestown, NA, KN

Long/Short

 

262.39%

 

Renovatio Fund, LP

Inception: Jul 2013  /  Fund Styles:  CTA/Managed Futures  & Global Macro
Location: Las Vegas, NV, US

CTA/Managed Futures

212.87%

Tianyou Fund, LP

Inception: Oct 2012  /  Fund Styles:  Options Strategies  & CTA/Managed Futures
Location: Fairfax, Virginia, US

Options Strategies

157.91%

Auscap Long Short Australian Equities Fund

Inception: Dec 2012  /  Fund Styles:  Long/Short
Location: Sydney, NA, AU

Long/Short

124.56%

LETS

Inception: Mar 2016  /  Fund Styles:  Aggressive Growth
Location: La Jolla, California, US

Aggressive Growth

 

118.29%

Macromoney Global Investments Ltd.

Inception: Jan 2013  /  Fund Styles:  Global Macro  & Long Biased
Location: Road Town, Tortola, VG

Global Macro

105.4%

 

Iron Condor Fund    

Inception: Jun 2013  /  Fund Styles:  Options Strategies  & Fixed Income
Location: Pittsburgh, Pennsylvania, US

Options Strategies

104.77%

Krensavage Partners, LP

Inception: Jul 2008  /  Fund Styles:  Health Care  & Long/Short
Location: New York, New York, US

Health Care

102.79%

 

West Mountain Partners, LP    

Inception: Dec 2002  /  Fund Styles:  Fund of Funds
Location: Atlanta, Georgia, US

Fund of Funds

88.02%

West Mountain Ltd.     

Inception: Jan 2008  /  Fund Styles:  Fund of Funds  & Fund of Funds - Multi-Strategy
Location: Atlanta, NA, US

Fund of Funds

85.74%

 


Geneva Global Macro is a micro hedge fund with assets of $150 000. It got performance of 0% in 8 months in a row in 2015. It has rare positive performance, but it has only one drawdown -5.97% in May 2016. I suppose that such type of performance is a cause of the Global Macro strategy which hedge fund uses. You can find more information about classification of strategies in the article HFR Strategy & Regional Classification

Renovatio Fund, LP has 4 million USD assets under management.  The hedge fund is in the third place in the ranking even though it had a high volatility of its performance and unsuccessful start 2016 with maximum drawdown -37.11%. 

Tianyou Fund LP is one of my favourite foreign hedge funds with assets of 100 million dollars. The hedge fund trades option strategies. It has only one month of negative performance with -16.66%. I suppose, it is  important to note that this hedge fund gets 35-45% every year for its clients.

Auscap Long Short Australian Equities Fund is an Australian hedge fund with assets of 250 million USD. It trades the Long-Short strategy with performance of 30-40% annual yield and with maximum drawdown of -7.55%.

LETS trades only several months.  I suppose it was included ( in the ranking) accidentally.

Macromoney Global Investments Ltd. trades Macro strategies. It gives stable performance with drawdown of -12.22%.

I have observed  Iron Condor Fund  for more than 3 years. It trades with the similar strategy as Tianyou Fund LP and it has  similar performance with drawdown only -9.20%. However I don’t understand why does it have less than 1 million dollars in the assets under management?

Krensavage Partners, LP focuses on buying Health Care shares with assets of 200 million dollars. It has performance of 30% annual year with maximum drawdown of -23%. 

West Mountain Partners, LP complete the  TOP 10. These are two funds of funds of one group.  The performance is not stable. It was included in TOP 10 due to the performance in 2013 when it got 100% annual yield.

Conclusions

There are few Russian hedge funds  and they don’t want to show their performance for public. From foreign hedge funds, the best are American ones, because there is  a big quantity of them.  Long-Short, Global Macro and Option strategies have good performances for the past 3 years. To enter in TOP 10 we have to have return of more than 100% for 3 years in our EAM Stocks&Derivatives Strategies S.P. hedge fund.







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