Survey: 2014 Sees Triumph Of Small Funds

Dec 23 2014 | 12:08pm ET – FINalternatives.com

Small hedge funds produced mighty results in 2014, according to new data form research firm Simplify.
The top-performing fund of the year was Hiren Ved’s Mumbai-based, $53 million Alchemy Capital Management; a long/short equity fund that was up 63% through November (the most recent data available).
Second place went to Oleg Nodelman’s San Francisco-based EcoR1 Capital Fund, a $206 million long/short equity fund that was up 62.2% through end November.
Third place also went to a San Francisco-based fund: Kurt von Emster and Behzad Aghazadeh’s $182 million venBio Select Fund, which was up 61.8% over the monitored period, according to Simplify.
Other smallish (under $1 billion) funds in the Top 20 included Paul Mulvaney’s $198 million Mulvaney Global Diversified Program, up 53%; and Darren Upton’s $660 million ISAM Systematic Fund, up 48%.
Which is not to say there was no good news for big funds: Bill Ackman’s $18 billion Pershing Square Capital Management scored a 38.6% gain in one of its portfolios.
Simplify founder Brian Shapiro said this year’s top 20 group was eclectic:
“There isn’t one unifying theme to this year’s top performing funds,” he told Reuters. “But big or small, these guys really earned their fees this year.”
The feat achieved by the performers on the list seems all the more impressive when you consider that the average gain for a hedge fund through November was 4%.