Here's how the best-performing hedge fund of 2016 is crushing it
Reuters/Luke MacGregor
Horseman Global, a $965 million fund comanaged by Clark and Bobby Turnbull, is up 10.49% through Wednesday, according to HSBC.
Horseman Global was also one of the 20 best performers in 2015, ending the year up 20.42%.
Most of Horseman's gains have come from its short book, Clark wrote in a "Star Wars"-themed investor update for the month of December, a copy of which has been obtained by Business Insider.
Here's an excerpt (emphasis ours):
Vader and Yellen moved over to an observation window. From the view she could see the dancing constellations that made up the financial universe. Many shone as brightly as they could. Record employment, record car sales, all-time highs in the stock market. Yellen let go of the light side of the force. Almost instantaneously, the Transport star system began to darken and disappear. The high yield nebula went into super nova and slowly began to darken. And then nothing. But as Yellen watched all the bright constellations began to darken ever so slightly. And Yellen could feel a tremor from a billion traders' hearts, as fear began to replace greed in their hearts. She wondered what she had done, as she stood next to Vader, and watched the lights go out.
Your fund remains long bonds, short equities.
Horseman Global
In the December update, Horseman noted that its gains also came from betting against oil and oil-transportation stocks.
The fund has also been short automobiles and financials, particularly emerging-market financials, the update shows.
The long bonds call has been spot on too. Money has rushed into the Treasury market amid the weakness in stocks, pushing the US 10-year yield briefly below 2% for the first time in three months.
Hedge funds on average this year are down 2.04% through Wednesday, according to data from Hedge Fund Research. Hedges funds on average finished 2015 down 3.49%, according to HFR.
Since Horseman's inception in February 2001, the fund has achieved annualized returns of 14.79%, according to HSBC.
The fund's only down years were in 2009 and in 2011, when the fund fell by 24.72% and 2.99%.
We've reached out to Horseman for comment.
- 6 reasons why you should visit Ladakh this summer
- TVS iQube gets a new variant priced under ₹1 lakh, ST variant gets a bigger battery
- As English players begin their premature IPL exodus, Gavaskar calls for action against England Cricket Board
- Top 10 destinations for river rafting in India in 2024
- Should you enrol your child in an online university like IGNOU?
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market