Former Goldman Star trader Driss Ben Brahim and his partner Jamil Baz, a former Pimco money manager, have the best performance of any large hedge fund portfolio we’ve seen recently.They’re up 16.6% in their Atlas Macro fund in the past 2 months.
Markets have been gripped by “a profound loss of confidence in policymakers, institutions and the system at large,” the portfolio managers say, according to the FT.
“Jamil and Driss have been extremely bearish on growth and the global economic outlook for some time and now it’s paying off,” says an insider who spoke to the FT.
In other words: they’re among some of the global macro managers that are making money off the euro crisis. Meanwhile the majority of hedge funds are getting destroyed. Last quarter recorded the worst hedge fund performance since 2008. September was particularly ugly.
There’s also good news from Brevan Howard, which has been performing well all year (up 11% YTD as of August), and Caxton. Brevan Howard’s $24bn flagship fund has risen 7% over the past two months, while Caxton Associates has seen its $5bn main fund rise 6% over the same period, according to the FT.
More good news from the FT:
Paul Tudor Jones, whose BVI Global fund jumped over 3% in August, and Colm O’Shea’s Comac Capital, which has risen 3% since the beginning of August.
There’s more detail on how Brevan Howard and other hedge funds are performing well in our round-up here >
The FT also adds some colour: “Brevan Howard has from time to time peppered its long US bond positions with long positions in peripheral European debt. The firm’s August letter to investors noted that “during July some small long exposures in Portuguese, Irish and Greek government bonds were established. Profits in the majority of these positions were subsequently taken…. Insiders say Brevan is still looking for opportunities to go long European peripheral sovereign bonds. For fear of relief rallies, it has operated all year under a policy of deliberately not going short.”