Hedge FundsThis list gives a brief overview of the most famous hedge funds in the world, discussing the investment strategies of the fund managers and their past performance.
More hedge funds can be found on the following pages: Top Hedge Funds, Popular Hedge Funds, and Largest Hedge Funds.
His fund, Berkshire Hathaway, still focuses on finding value in stocks, but the investment strategy had to be adjusted over the years as the fund became larger. It became more difficult to efficiently grow capital at the rates enjoyed in the past (this happens with all hedge funds when they become very large).
Despite that, Berkshire remains one of the largest and most successful holding companies in the world, and Buffett remains a hallmark of investing followed by thousands across the globe.
Today, the investment philosophy of his hedge fund, Icahn Enterprises, remains similar though slightly less hostile. He follows an activist investor approach, taking decisive actions to make his investments achieve a good return. He is often involved in big public feuds with other investors or executives as they try to push opposing views regarding a stock.
Soros eventually returned investor money and now Soros Fund Management operates as a family investment fund, managing billions of dollars in family wealth.
A polarizing figure, Soros is often featured in the media and is heavily involved in political activism.
More recently, Ackman's fund, Pershing Square Capital Management, made a few losing bets that cost investors millions of dollars in losses. As a result many investors are reported to have withdrawn their money from the fund.Apple and GM.
However, the fund recently made big losses on some of its big short positions. Greenlight was one of the very few institutional investors who dared to short Amazon stock. Other risky shorts taken by Einhorn include Netflix and Tesla.
The large losses Greenlight incurred from these positions severely hurt the fund and its investors, sometimes wiping out their gains in other stocks (Elon Musk sometimes taunts those taking short bets against Tesla)
His hedge fund, Paulson & Co, focuses on finding arbitrage opportunities in events such as Mergers & Acquisitions, restructurings, and other similar corporate changes. The fund is also invested in debt and real estate.
Over the years Appaloosa returned a lot of capital back to investors, instead focusing on managing Tepper's wealth and those of the fund's employees. Tepper is prominent in the investment industry, with some viewing him as some sort of investing God.
When filing regulatory documents for Third Point Management, Loeb often writes letters that attack inefficient company management, criticizing actions that he believes are not in the best interest of shareholders. His letters have attracted quite the following in the hedge fund world, and some even attribute changes in some corporation's management to those letters.
Citadel owns over 4,000 stocks and operates globally, hence it can be difficult to follow its trades or the actions of Kenneth Griffin himself. Currently, its top 20 positions make up only about 10-12% of its portfolio, with most stocks having a weight of less than 1%. Nonetheless, Citadel's top 20 weighted portfolio has outperformed the S&P over the past 3 years.
Furthermore, Citadel often uses quantitative analysis to make investment decisions and have a division dedicated to that.
Paul uses both macro and micro analysis in his investing decisions, and Tudor Investment also recruit quantitative researchers for their trading models and computer based investment techniques.
While he was a quick trader in the past, Cohen reportedly has evolved into holding positions as long-term investments. Although Cohen was involved in an insider trading scandal, he managed to strike a deal and settle a civil case that forbade him from managing investor funds till 2018.
RenTech employs mostly scientists, mathematicians, and statisticians who often have little to no market experience. Instead, the fund mines large amounts of financial data and uses its computer models to predict future market movements. Unfortunately, Renaissance Institutional Equities Fund (RIEF) has not performed as good as RenTech's other exclusive funds that are only available to employees.
Furthermore, RenTech once urged the SEC to not implement a rule that would have forced Hedge Funds to publicly disclose short positions. Imagine how much better Hedge Follow would be if that rule passed.
Ray Dalio's stock investing philosophy was that the fund should use two investment strategies in parallel. A passive investing approach that is exposed to overall market risk, and an active investing approach that involves actively acquiring stocks and positions uncorrelated to the market.
The fund also likes to diversify and avoid investing in highly-correlated assets.
Cooperman mostly managed his own money in his fund, and in 2018 actually announced he will be returning all investors' money and will turn Omega Advisors into a family investment office.
BP Capital focuses on investments across the energy supply chain, using a bottom-up fundamental analysis of stocks to find opportunities for capital appreciation and returns.
Today, Millennium uses a large number of traders working in teams focused on different strategies. The intent is to achieve diversification through implementing a broad range of investment approaches.
Nonetheless Robertson remains invested in the hedge fund business mostly through other hedge funds and investment vehicles. Robertson mentored several investors during their time at Tiger that eventually many went on to start their own hedge funds and were dubbed "Tiger Cubs".
Examples of the Tiger Cubs include Chase Coleman's Tiger Global Management, Glen Kacher's Light Street Capital, and Jonathan Auerbach's Hound Partners.
What remains is Duquesne Family Office, a family investment fund that is concentrated in a relatively small number of stocks.
Nonetheless, Lampert remains the first hedge fund manager to ever make over $1 billion in one year. His investment style typically involves finding undervalued stocks in a similar manner to Warren Buffett (Lampert was an avid reader of Buffett's shareholder letters).
Note that technically Lampert's Hedge fund is ESL Investments, though reporting is done through RBS Partners. On Hedge Follow both of those are merged into one page for convenience of the users.
Yacktman looks for stocks of companies that have a good business but have fallen from the graces of the markets temporarily. He invests in those undervalued companies and perseveres with patience until the stock appreciates in value.
His son, Stephen (or Steve) Yacktman recently took over operations of the fund, while his other son, Brian Yacktman, manages the hedge fund YCG.