Several multibillion-dollar hedge funds experienced gains in November, according to data reviewed by Reuters, capitalizing on the volatility surrounding the US presidential election despite the tight polling that made positioning challenging for portfolio managers.
Following Donald Trump's election victory on November 5, US stocks, the dollar, and bitcoin surged, while the euro and Mexico's peso faced difficulties. US treasuries performed well in November, with the 10-year Treasury yield declining by approximately 10 basis points over the month, as a late-month rally offset yield increases around the election period.
Globally, hedge funds recorded gains of 1.46% last month through November 27, and are up 10.6% year-to-date, according to a Morgan Stanley prime brokerage note published on November 29. However, some portfolio managers achieved gains significantly above the average.
Technology-focused equity hedge fund SoMa Equity Partners surged 9.5% last month, marking its best monthly performance, largely due to gains in mid- and small-cap stocks, according to a source familiar with the numbers. Key contributors to its performance included WIX, which soared nearly 32% in November, and Datadog and Shopify, which rose 22% and 44.5% respectively.
Macro hedge fund Discovery Capital, founded by Rob Citrone, jumped 14.5% last month, according to another person. His fund is up 46.5% for the year. Discovery is known as a 'Tiger cub' because its founder worked for legendary investor Julian Robertson at Tiger Management. Citrone's fund bets on macro trends as well as equities, both long and short positions, with all asset classes contributing positively to performance, the source added.
Multi-strategy hedge fund Cinctive Capital, with approximately $3 billion in assets at the end of 2023, increased by 5.1% last month, driven by returns in sectors such as technology, consumer, energy, utilities, and financials. Ken Griffin's Citadel and Schonfeld both gained 1.8% in their flagship multi-strategy funds Wellington and Strategic Partners, according to sources. The Winton Fund gained 0.3%, according to a separate source.
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