Sunday may be the Academy Awards, or should I say Oscars, but today Institutional Investor’s Alpha magazine released its annual survey on hedge funds where investors were asked to evaluate firms on a variety of factors, including alpha generation, alignment of interests, infrastructure and liquidity terms.
Silver Point Capital, managed by Edward Mule, whose max draw down was 35.5% between June 2007 and December 2008 took the top ranking. The fund was up 16% in 2013 and 20% in 2012. Started on January 1, 2002, the now $5bn distressed shop has an annual return of 13.11% and a Sharpe Ratio of 1.6x. Silver Point took the award for Best Alpha Generation, Best Alignment of Interests, and Best Transparency.
Activist Dan Loeb’s Third Point took second place with awards for Best Liquidity of Terms and Best Independent Oversight, followed by:
3. Adage Capital
4. Elliott Management
5. Citadel
6. Perry Capital
7. Davidson Kempner
8. CQS
Baupost, Seth Klarman’s Boston-based firm that we have written on before in the Bloodhound Exchange, won the award for Best Risk Management.
Always the muckracker, I also like to see who fared the worst. All four of the following firms received a grade of “F.”
BlueCrest Capital (out of the UK)
Bain Capital (sorry Mitt)
Eton Park
Cerberus Capital