That Guy Who Started His Hedge Fund In A Basement Is Up 90% YTD

wydens

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Successful businesses have an uncanny habit of starting in the nooks and crannies of homes.Adam Wyden might be adding his hedge fund to that list.

His fund is minuscule compared to even small hedge funds, a label which is typically given to funds with less than $500 million in assets under management.

Still, it’s impressive that Wyden’s ADW Capital partners – less than a year off the ground – is up 90% year-to-date, according to AR Magazine.

Wyden started his long/short equity fund in January in the basement and second floor of his mother’s Washington D.C. home with $400,000 of seed money, and now has $9 million in assets under management, AR Magazine reported.

According to a February profile of Wyden in Bloomberg, Wyden is “among the first generation of post-crash money managers, many of whom must keep a lid on expenses in the face of a difficult money-raising environment.”

Wyden told Bloomberg that he modelled his fund after Warren Buffet’s earlier partnerships, before the multi-billionaire started Berkshire Hathaway. In his profile on Seeking Alpha, Wyden describes his fund as a “small cap focused, deep-value fund akin to Buffett Partnership Ltd.”

So far, his secret to success appears to be delving deeply into understanding a company’s history and operations. According to AR, Wyden took long positions on companies that had a history of growth, high insider ownership and recent restructuring. The fund shorted companies with operational and capital structure issues

Wyden’s background may also have a bit to do with his success – he studied economics at UPenn’s Wharton, interned at the hedge fund D.E. Shaw in his undergrad years and has an MBA from Columbia Business School. Before business school, he worked as an analyst at SMH Capital. He’s also the son of Oregon senator Ron Wyden.

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