Second quarter wasn’t very kind to most hedge fund managers‘ long positions. S&P 500 index ETF (SPY) lost 2.84% during the quarter. Most hedge funds’ large-cap stock picks performed even worse than this. In this article we will take a look at the performance of top hedge fund managers’ large-cap stock picks. Our calculations don’t represent the actual performance of these fund managers because we don’t take into account their offsetting short positions, options, or other holdings.
1. David Einhorn: Greenlight Capital had 24 large-cap picks and these stocks lost 7.5% during the second quarter. General Motors (GM), Gold Miners’ ETF (GDX), Seagate (STX), and Delphi (DLPH) lost at least 7.5% and Einhorn had at least $250 million in each of these names at the end of March.
2. Paul Singer: Elliott Management’s 17 large cap picks lost an average of 12% during the second quarter. Elliott had more than $1.3 billion in Delphi which lost more than 19% during the second quarter.
3. Chase Coleman: Tiger Global’s 18 large-cap stock picks lost an average of 9.2% during the second quarter. These calculations do not take into account Coleman’s Facebook positions. Tiger Global had more than $1 billion invested in Yandex (YNDX). Russian search engine company lost 29% during the second quarter.
4. John Paulson: Billionaire hedge fund manager’s 39 large-cap picks lost an average 8.8% during the quarter. Delphi, MGM, Hartford Financial (HIG), and Anglogold Ashanti (AU) contributed to poor results.
5. Dan Loeb: Third Point’s 28 large-cap picks lost 7.7% during the quarter. Loeb’s billion dollar Yahoo (YHOO) position actually gained 4% but Delphi, Abercrombie & Fitch (ANF), Cisco (CSCO), Google (GOOG), and Marvel (MRVL) contributed to poor results.
7. David Tepper: Appaloosa’s 36 stock picks lost an average 6.4% during the quarter.
8. Steve Cohen: Even the incredible Steve Cohen’s large long picks underperformed the market in the second quarter. His 857 positions had an average loss of 5.9%.
10. Ken Griffin: Citadel’s 933 large-cap positions lost 5% during the second quarter.
11. Eric Sprott: Sprott Asset Management had 48 large-cap stock picks which lost 12.8% mainly due to a decline in precious metals.
Who did we miss? Please email us to find out the average returns of other hedge funds’ top stock picks.