A variety of hedge fund numbers for 2021.
To tell you the truth, whenever I attempt to write an update on the hedge fund industry, also referred to as the Alpha Bullcrap Industrial Complex, I find myself becoming depressed. It’s not that all of them are awful in the same way. Please let me know which funds, both good and bad, you believe warrant discussion, and I will do my best to obtain information on those funds.
In terms of longevity and outperformance, I believe that MMCAP is the opportunistic hedge fund that has proven itself to be the most successful in Canada. They increased by 55% the year before, following an increase of 47% the year before that. Since 2002, the fund has achieved an annual compound growth rate of more than 25%.
They have a structure that is located offshore (while it is not against the law for Canadians to invest offshore, doing so does create some administrative difficulties). They also offer a product that is more retail-oriented and is eligible for RRSPs under the name Spartan Funds.
They made a profit from SPACs and a directional call on uranium the previous year, both of which are topics to which they continue to be exposed. Due to the fact that their primary focus is on utilising various forms of arbitrage to take advantage of market inefficiencies, the uranium call stands out as an anomaly for them.
Perennial Frank J. Selke Trophy winner In 2021, Waratah Performance saw an increase of 16.6%. The company is currently managing $3.4 billion across a variety of strategies, the vast majority of which are conservative. Of this amount, employees own $171 million.
One of the more recent hedge funds that I should keep an eye on is Jordan Zinberg’s Bedford Park Opportunities Fund, which saw its value increase by 34% in 2021. They concentrate on stock picking in the traditional sense and trading in Canadian small caps. Goeasy (with a gain of 88%) and Converge Technology Solutions (with a gain of 120%) were both very successful last year.
They had very little leverage and were not exposed to any energy risk. The fund had a remarkable turnaround in 2020, achieving a gain of 33% after suffering a loss of 42% in the first quarter.
Send an email to [email protected] to be added to the mailing list maintained by Brian Viveiros if you are interested in keeping a close eye on the performance of hedge funds. In addition to that, there is a service known as Global Manager Research that requires payment.
Senvest Management, which was the reputable hedge fund with the best performance over the past year, has its parent company and management based in Montreal. They were up 85%, primarily due to the fact that they made almost a billion dollars off of the GameStop frenzy. Senvest Capital, the parent company, is traded on the Toronto Stock Exchange (TSX), and the Mashaal family, which is behind it, owns nearly 55% of it. This stake is valued at approximately $500 million.
When I was researching Senvest for my article from the previous year, I contacted the fund manager of Senvest, Richard Mashaal, and asked him if he still had any connections to Montreal (seeing as how the hedge fund itself was based in New York). Richard did not provide a response. And yet, later on, he granted a lengthy interview to my cross-town rival, the failing La Presse, in which he discussed a variety of topics, ranging from his first job to his children to the manner in which he currently divides his time between California, New York, and Montreal.
This cannot be allowed to stand. As a form of retaliation, I will be publishing a photo of Richard Mashaal’s residence in Montreal. This year, you can anticipate a more combative tone.
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