US, WASHINGTON (ORDO NEWS) — The situation on world markets looks rather ambiguous. Oil markets experienced a deep shock this week. In this regard, many companies and hedge funds are losing revenue.
Nevertheless, there are hedge funds that are well aware of market trends and which, even in the current situation, were able not only not to lose money, but also managed to make significant profits. Below we will talk about these hedge funds.
Renaissance Technologies is a hedge fund founded by Jem Simons.
As of April 14, the main fund Medallion reported income of 39% before taxes. Moreover, as of March, the fund reported an income of 9.9% after taxes, while the S&P 500 dropped to a minimum of three years.
Since 1988, Medallion has been making an average annual profit of 39% after taxes annually, according to an article by The Wall Street Journal. It was the hedge fund strategy, which allows predicting movements in the stock and bond markets, that helped the fund generate large profits during the collapse of the dotcoms in the 2000s, as well as during the 2008 financial crisis.
Bill Ekman, the billionaire and head of the Pershing Square hedge fund, understood the risks associated with the coronavirus epidemic quite early and hedged his portfolio against a market crash.
Ekman spent $ 27 million on credit default swaps. They rose in price to $ 2.6 billion when the epidemic led to an increase in the number of corporate defaults.
A profit of $ 2.6 billion was able to offset losses in the portfolio of Pershing assets and allowed Ekman to maintain his stake in companies such as Hilton and Warren Buffett’s Berkshire Hathaway.
Pershing net profit in March amounted to 11.1%, in the I quarter profit reached 3.3%
Universa Investments hedge fund reported a strikingly high net profit of 4,144% for the year as of April 7th.
Universa is a hedge fund that stakes on high risks, the black swan effect and market shocks.
The head of the fund is Mark Spitsnagel, protege of Nassim Taleb, author of the famous book “The Black Swan”. Spitsnagel previously worked for Taleb’s former hedge fund Empirica Capital, while Taleb works as a research consultant at Universa.
The Crescat Capital hedge fund reported 40.4% and 34.5% profit in its two key funds between February 20 and March 20.
Crescat CEO Kevin Smith kept half of his assets in cash, and also invested in gold and silver in anticipation of a shock in the markets.
Smith built his strategy based on letters from Warren Buffett to shareholders.
LongTail Alpha, a California hedge fund managed by former PIMCO manager Wiener Bhansali, reported a 400% profit in the first quarter of this year.
Earlier this year, the fund invested in stocks and bonds, positioning itself as a fund that will profit when market volatility increases. As a result, two key funds received significant profits in a shocking market situation.
Ruffer, a London-based investment fund, posted a profit of $ 2.6 billion during the market panic over coronavirus.
The fund invests in derivatives by tracking the VIX volatility index, often referred to as the fear index. The fund also invested in credit derivatives, S&P 500 and Euro Stoxx 50 options, as well as gold.
Ruffer’s profit of $ 2.6 billion was able to offset losses on other assets.
Odey Asset Management
Odey Asset Management, led by Crispin Odi, has reported on a number of its funds during a downturn in the markets.
The Swan Fund, managed by Ody himself, reported a 20% profit in March and 8.3% in the first quarter.
Odyssey Fund, which stakes on large-scale market trends, made a profit of almost 16% last month and 27.4% in the first quarter.
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