Was it $2 Billion pre- or post-1,000% return? (I ask because I don't have access to the whole article.) If post, then it was not a $2 Billion fund that made such a return, but a <$200 Million fund. Even so, it is thoroughly impressive.
Yeah 3.6 billion, these HF guys are breaking compensation records every single year. People that don't know about hindsight bias, and survivorship bias, can easily blow up trying to emulate that kind of success. Its just a matter of time before we start hearing of 20% incentive fees for CEOs as well and then one billion dollar comps. will be the norm for CEO pay as well.
lahde's tiny. barely managed a $20 million fund before this year: http://ftalphaville.ft.com/blog/2007/09/27/7666/having-a-lahde-the-410-per-cent-man/ great return, but nothing earth shattering
No one is LESS impressed by random performance than me. For instance , an imbecile like Longhorns remembers to breath every few seconds. Pure random luck. Can't last. But requiring '10 years' of performance is not much different than saying Warren Buffett can only be judged after 75 years of performance. At some point you must accept good judgment for what it is.
Am I the only one who doesn't have a reading comprehension problem? The article DOESN'T say the fund had 2 billion under management!!! Actually, it says that Lahde's is one of the smallest funds playing this particular field. After looking it up in the Barclay HF database: Administrative Information Annual Returns: 847% FUM $ : $ 10.00 M So that was a 10 million dollar fund when he started it... His other similar fund the class B started with 21 million. Start Date Apr 2007 2007 YTD 222.49% FUM: $ 21.00
On the other hand the best bigger than 1 billion fund return (that I could find) belongs to Harbinger Capital Partners Special Situations Offshore They did a 200% return for the last 12 months and up 160% YTD and the fund had 1.8 billion AUM....
So looks like the record for best 1 year performance still belongs to the mentioned HF, it had 190 million AUM 5 years ago: It's 5 years performance: 1475%, 49%,26%, 43%, 23% YTD. So if you invested 1 dollar with them back in 2003 that is 52 dollars now!!! Performance Analysis Total Return 5075.63%