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The rankings 2016 of the hedge funds database HedgeCo.Net

20 February 2017

Every year I conduct research of hedge funds rankings in HedgeCo.Net and the ranking of Russian hedge funds. However, at this year I decided not to make these rankings because the ranking agencies in Russia did not give the information. Those funds, which I did a review of in 2015 from the open information sources either left the market or have ceased to publish information.

TOP hedge fund  rankings in 2016 on HedgeCo.Net

Fund Name and Fund Style

YTD

Comments

Distressed Debt 1  

Inception: Oct 2015

Fund Styles:  Distressed  & Fixed Income 
Location: Tigard, Oregon, US

145.59%

 

Distressed Debt 1 is the new hedge launched two years ago. In 2016, its positive performance ranged from 3.5% to 27% during 9 months. Three losing months of which the max loss of 2.82%. The max drawdown is 15.80%. The Sharp coefficient is 1.64. AUM is 2.4 M USD. The strategy focuses on the purchase of destressed securities, which increases in value after the company's restructuring.

LETS

Inception: Mar 2016

Fund Styles:  Aggressive Growth 
Location: La Jolla, California, US

108.49%

The hedge fund started less than one year ago in March 2016. The range of positive performance is from 0.48% to 34.20%. Four in a row were losing months July – October. The max drawdown was -20.52%. AUM is 3.75M USD. The Sharp coefficient is 1.43. This strategy is designed to take advantage of the volatility in the market. It integrates cost basis improvement techniques and the use of long and short ETFs such as QID and QLD.

Rhino Fund  

Inception: Jan 2016

Fund Styles: Long/Short & Energy 
Location: West Conshohocken, Pennsylvania, US

106.09%

 

Rhino Fund started one year ago. The range of positive performance is from 1.50% to 27%. Hedge fund had three losing months with the max drawdown -10.59%. AUM is 15.40M USD. The Sharp coefficient is 1.82. Rhino Fund is a long/short equity fund employing a fundamental bottom up stock selection investment process focused on the US Energy and Basic Materials Sector.

Volpoint Fund, LP  

Inception: Mar 2016

Fund Styles: Other Relative Value  & Quantitative 
Location: Frisco, Texas, US

100.67%

Volpoint Fund started in March 2016. The range of positive performance is from 1.03% to 34.92%. Hedge fund had three losing months with the max drawdown 8.90%. AUM is 3.54 M USD. The Sharp coefficient is 2.44. The Fund focuses primarily on VIX Index Futures, cash, and investment grade fixed income securities (primarily through Exchange Traded Funds). The Fund may also invest in other securities and derivatives for exposure to or to hedge volatility.

Bernett Diversified Global Fund, L.P.  

Inception: Jan 2010

Fund Styles:  Global Macro  & Short Term Trading 
Location: Forest Hills, New York, US

94.57%

Bernett Diversified Global Fund trades with high ratio return/risk that reflects in the performance. The max drawdown is -70.88% and the max return of month is 69.67%. AUM is 0.48M USD. The Sharp coefficient is 0.17. The Fund invests in securities using registered investment companies (mutual funds), exchange-traded funds, and direct investments.

Zafiro Capital Managed Account Palladium  

Inception: Nov 2014

Fund Styles: Commodities  & Long Only 
Location: Geneva, NA, CH 

88.74%

Zafiro Capital Managed Account Palladium has been working since November 2014. In 2015, annual return was 3.78%. In 2016, the range of positive performance is from 2.35% to 37.82%. I think the performance reflects the track record of the paper trading because there is no the assets under management. The Sharp coefficient is of 0.86. The strategy focuses on long core position as well as trading around the market. The max long position may be 200% of AUM.

Fama Brazil Cayman Feeder Fund

Inception: Dec 1995

Fund Styles:  Emerging Markets  & Long Only 
Location: Grand Cayman, NA, KY

87.04%

The hedge fund has been working since 1995 but it shows the performance for only the last two years. In 2015, it had the negative performance -53.33%. In 2016, it got the positive performance +87.04%. Fama Brazil Cayman Feeder Fund has the max drawdown -60.04% and the Sharp coefficient is 0.18. AUM is of 308M USD. The investment philosophy of the company is based on the search for listed Brazilian companies, which have great operational perspectives and high appreciation potential that compose a unique investment opportunity. When analyzing companies, the team focus on the long-term (at least 3 years), which leads to a close relationship with the companies’ directors, including seats on the Boards of Directors and Audit Committees. Companies are selected using purely fundamentalist criteria and conservative assumptions.

Global Advisors Bitcoin Investment Fund  

Inception: Sep 2014

Fund Styles:  Aggressive Growth  & Other 
Location: St Helier, NA, JE

71.26%

Global Advisors Bitcoin Investment Fund is working 2.5 years. In 2015, the hedge fund got the return +37.40%. The max drawdown -41.95%. The Sharp coefficient 0.77. AUM is 5M GBP. The fund aims to profit from investments in bitcoin and the bitcoin ecosystem. The fund maintains a long position in bitcoin but may trade other commodities, FX in addition.

Value Works Limited Partnership, LP  

Inception: Jan 2006  /  Fund

Styles:  Long Biased  & Value 
Location: New York, New York, US

66.45%

The fund has been working more than 10 years. The max drawdown is -57.99%. The Sharp coefficient is 0.37. AUM is 52M USD. VWLP is a hedge fund comprised of long biased, leveraged, value based investment products. The objective of the fund is to generate superior capital appreciation with only average market volatility.


The range of yields of the 2016 ranking is much narrower than in 2015 and ranges from the min yield +66.45% to the high yield +145.59%. In 2015, the range of yields was from the min +58.52% to the max +332.01%. There is no predominance of any particular strategy neither in 2015 nor in 2016. In 2016, bitcoin strategies entered the top rankings. Nobody from the hedge funds of the TOP 2015 ranking was included in the 2016 ranking. More significant ranking is the TOP ranking of hedge funds over a period three years. This long-term ranking helps to find out the most stable hedge funds receiving the excess yield.

The best hedge funds of rankings from HedgeCo.Net for the period 2014-2016

Fund Name and Fund Style

3 Year Return

Comments

Renovatio Fund, LP  

Inception: Jul 2013

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

130.23%

Renovatio Fund, LP is an investment fund with a Global Macro investment strategy. Renovatio Fund combines fundamental macroeconomic analysis (to identify trades) with technical analysis (to identify entry and exit points). It achieved the great performance in the first two years of 105% and 89% respectively. However, in 2015-2016 the performance was only of 8.39% and 12.02% respectively. The Sharp coefficient is 1.07. The max drawdown is -37.11%. The assets under management (AUM) is 6.6 M USD.

Fourthstone Opportunity Fund LP  

Inception: Mar 2010  /  Fund

Styles:  Finance  & Long/Short 
Location: St Louis, Missouri, US 

113.78%

Fourthstone Opportunity Fund LP  trades the full three years.

The performance gets better and better every year.  In 2014, the performance was 19.51%, in 2015 was 24.08% and in 2016 was 44.17%. The max drawdown was only -3.28%. The Sharp coefficient is 2.57. The AUM is 17M USD. Fourthstone Opportunity Fund LP utilizes both buy and hold and short-term trading strategies dependent on the various market factors at the time. Fourthstone Opportunity Fund LP invests in U.S. banks, thrifts, and related financial service companies. From time to time, the management of the hedge fund invests both outside the U.S. and outside the financial services industry in companies he identifies to be over or under-valued and offering compelling investment returns.

Arquitos Capital Partners, LP  

Inception: Apr 2012  /  Fund

Styles:  Value  & Long Biased 
Location: Larchmont, New York, US

108.17%

Arquitos Capital Partners, LP gets a good performance all four years of its life. In 2013

+46.53%, 2014 +57.77%, 2015 -14.81% and in 2016 +54.88%. The max drawdown is -24.16% and the Sharp coefficient is 1.20. The assets under management is 6.9 M USD. Investment Approach:
-Long-biased value-oriented partnership with a heavy focus on company-specific situations
-Focused on absolute long-term capital appreciation
-Fundamental research relying on heavy due diligence
Significant portion of the portfolio invested in special situation investments uncorrelated to the overall markets.

ArbitrOption Cptl Event-Driven Investing  

Inception: Aug 2009

Fund Styles:  Merger/Risk Arbitrage  & Special Situations 
Location: Takoma Park, Maryland, US

102.97%

ArbitrOption Cptl Event-Driven Investing has invested since 2010 and got the most min annual performance +10.96% in 2016. ArbitrOption Cptl Event-Driven Investing has not had the negative annual performance and the best performance was 65.03% in 2012. The max drawdown is -24.68% and the Sharp coefficient is 1.24. The assets under management is 12.2 M USD. ArbitrOption’s investment strategy focuses on opportunities created by corporate events, such as acquisitions, mergers, proxy contests, restructurings, shareholder agitation, special dividends, and spin-offs. By marrying traditional event-driven research with an exchange-listed option-trading tactic, the firm is able to achieve greater cash efficiency and more quantifiable risk. In short, ArbitrOption outperforms by combining expertise in assessing an event's probable timeframe and terminal value with proficiency in trading listed call and put options.


In the span of three years, the leader of the hedge fund ranking was and still is Renovatio Fund.

The average yield of the best fund over three years has remained approximately the same as that of 100% to 130% in the past year, which corresponds to 35-40% per annum. The Sharp coefficient is more 1. AUM is from 6 to 17 million dollars.

What was happened with TOP hedge funds of 2015 in the rankings onHedgeCo.Net?

I wrote above that the most valuable hedge funds are those that are the most stable over several years. . If you see the rankings in 2016,you will realize that the most hedge funds are beginners. These hedge funds have track records of less than 3 years.

At first, I concluded that  beginners are lucky but I learned which funds were the TOP ranking in 2015 and realized the most of these hedge funds have track records more than 5 years. Let’s see what has happened with the TOP hedge funds of the ranking 2015 HedgeCo.Net.

Fund name

 YTD, 2015

YTD, 2016

Comments

Absolute Value Fund, LLLP

Inception: November 2001 

Fund style: Quantitative & Long-Short
Location: Florida, US

332,01%

N/D

The hedge fund found from the database HedgeCo.

Da Vinci K2 Tachyon Fund

Inception: December 2008

Fund style: Global Macro
Location: Unterageri, Switzerland

213,10%

N/D

The hedge fund found from the database HedgeCo

Forum Global Opportunities Fund

Inception: July 2005

Fund style: Global Macro/Long-Short
Location: Tortola, US

116,04%

-59.78%

The hedge fund got the worst performance for the period of work. The max drawdown 69, 60% was in 2016. In 2016, Forum Global Opportunities Fund had eight losses month in a row.

PharmaInvest Fund Ltd. 

Inception: October 2006

Fund style:  Emergency Markets
Location: Bahamas

108,31%

96,06%

PharmaInvest Fund Ltd. got the great performance and it was included in the ranking of the best hedge funds in 2016.

Emerging Value Opportunities Fund Ltd.

Inception: December 1993 

Fund style:  Emergency Markets
Location: Bahamas

98,93%

93.24%

Emerging Value Opportunities Fund Ltd. got the great performance but it was included in the ranking of the best hedge funds in 2016.

Honeybee Fund, LP

Inception: August 2014

Fund style: Quantitative & Aggressive growth
Location: California, US

87,93%

-6.20%

Honeybee Fund has been working since 2014. In 2016, the hedge fund hadnegative performance and increased the max drawdown -26.63%.

Quantitative Global Fund (3X)  

Inception: June 2005

Fund style: Quantitative & Aggressive growth
Location: Charlottesville, US

72,26%

N/D

The hedge fund found from the database HedgeCo.

Sentiment Table Strategy

Inception: December 2014

Fund style: Aggressive growth
Location: California, US

70,54%

-5,94%

Sentiment Table Strategy has been working since 2014. In 2016, the hedge fund hadnegative performance and increased the max drawdown -11.86%.

AAM ABSOLUTE RETURN FUND PLC/ CLASS Ŕ&B (NOK)

Inception: December 2005  

Fund style: Long-Short
Location: PO Box 1423 Vika, NA, NO

58,52%

12,04%

AAM ABSOLUTE RETURN FUND has been working since 2005. In 2015 the performance 58,52% was exceptional. In 2016 the performance 12,04% corresponds to the average result for the whole time of the fund.


Conclusions

Traditionally, I compare ratings with the hedge fund Eganov Asset Management Stocks&Derivatives Strategies and with the benchmark index S&P500. In 2016, the hedge fund Eganov Asset Management Stock&Derivatives Strategies had performance +14.87% and the index S&P500 +9.54%. In comparison to the index, our hedge fund had better performance. However, to enter to the TOP ranking and interest the investors to our hedge fund we have to get 35-40% annual yield for a minimum of three years in a row with our Sharp coefficient of 1 or more. 

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