The hedge fund industry has taken some hits in the last couple of years. One way this was experienced was through the significant depletion of profits of hedge fund managers’ in 2016. But today, hedge funds are generally faring much better; hedge fund managers are once again enjoying better returns with greater investment gains and fewer are losing money.
Brahman Capital Corp is one example of this.
“At its apex around two years ago, Brahman managed more than $5 billion, as principals Mitchell Kuflik and Robert Sobel bet big on hedge-fund favorite Valeant Pharmaceuticals Inc. When Valeant’s stock plummeted from $257 to $14 a share, Brahman fell in turn, as the firm reported losses and investors pulled their money. Brahman sold Valeant stock last year and with what is now $3.8 billion of remaining cash pivoted to new ideas like a stake in travel company Expedia, people close to the firm said. This year, Brahman’s main fund is up 17%, the people said.”
More than successful returns, some hedge fund managers are finding that they want to find more hedge funds in which to invest. This sentiment was echoed by APG Group NV hedge fund manager Ronald Wuijester who said:
“We would like to invest more in hedge funds and private equity but the very best of them virtually have no capacity to accept more of our money. We don’t want to be on a gliding scale where we accept a lower return for the same amount of risk.”
Hedge funds are back. Compared to 2016, today’s outlook for hedge fund managers is extremely positive.