Strategies of the Best Performing Hedge Funds of 2020

Strategies Best Performing Hedge Funds 2020

Are you looking for some interesting strategies to invest in 2021? Certainly, past returns are not a guarantee of future performance. However, a good start point could be the best performing strategies and hedge funds during 2020.

Most of them have assets under management below 2 billion dollars. All the top 10 ten nets less than 10 billion dollars. While 7 out of 10 funds in the top 10 are Equity Long/Short funds, a few different strategies delivered a strong return: Pre-IPO tech investing, credit default swaps, and structured investments.

US and Greater China equity markets remained the focus of the majority of top hedge funds. Although, there was a geographical diversification in places like Northern European markets.

In terms of sectors, technology, e-commerce, and innovative companies remained as the top destination of money flows.


10. Pinpoint China Fund Class A

Performance 2020: 52.79%

Strategy: Equity Long/Short Fund

Methodology: Top-Down fundamental research methods to decide on long-term value investment opportunities.

Target Markets: Greater China Equity

AUMs (billions): $1.70

Headquarters: China

Most of the gains came from solar, domestic consumption, and “made in China” hardware and technology. It also included investments in autos, higher education, and the online economy.

9. Pershing Square Intl. Ltd.

Performance 2020: 53.86%

Strategy: Equity Long/Short fund

Methodology: Hedge its positions by investing a sizeable portion of funds in corporate credit spread and bond indices.

Target Markets: US equity markets

AUMs (billions): $2.59

Headquarters: Grand Cayman

The fund invest in credit spreads -the premium charged for riskier company bonds above goverment debt-. That made sense since the recovery became increasingly priced-in and some assets looked overvalued.

Interesting for you:  Is Zorro project worth trying for algorithmic trading?

8. Marshall Wace UCITS Fund PLC – MW TOPS China A Share UCITS Fund

Performance 2020: 56.13%

Strategy: Equity Long/Short fund

Methodology: Long-term capital appreciation.

Target Markets: Greater China Equity

AUMs (billions): $0.43

Headquarters: Ireland

7. Alanda Opportunities Fund

Performance 2020: 62.86%

Strategy: Equity Long/Short fund

Methodology: The fund’s competitive edge comes from having a concentrated portfolio built by data science and fundamental research on TMT, Consumer, and Business Services sectors.

AUMs (billions): $0.50

Headquarters: UK

Some of the smallest funds are emergning as some of the best performers. They can dard in and out of holding to protect gains or minimize losses. The company combines fundamental insights with proprietary data science to make its investments. Moreover, the company says it uses a “bottom-up approach, supported by catalysts, for security selection.” As per the company, it partners with late-stage, pre-IPO technology firms that complement its “core long-term growth themes.”


6. Accendo Capital SICAV, SIF

Performance 2020: 69.28%

Strategy: Equity Long/Short fund

Methodology: Companies that “drive or benefit from technological innovation.”

Target Markets: Northern European

Headquarters: Luxembourg

Investing in listed Northern European companies. The company primarily focuses on companies that “drive or benefit from technological innovation.”

5. SABA Capital Offshore Fund Ltd.

Performance 2020: 70.73%

Strategy: The company focuses on three strategies – Closed-End Funds, Credit Relative Value, and Tail Hedge.

Target Markets: US equity markets

AUMs (billions): $3.38

Headquarters: USA

The firm was among the investment firms that profited the most from the repricing of credit default swaps (CDSs) of riskier high-yield credit.

Interesting for you:  Stock Market dynamics: an example of Emergence

4. Belerion New Wave Fund

Performance 2020: 74.79%

Strategy: Equity Long/Short fund

Headquarters: UK

Long/short equity e-commerce and technology fund. This fund uses a “flexible but disciplined approach to investing in quality business models.” The New Wave Fund aims to invest “into the acceleration of global digitalization, while making use of the opportunities offered by the structural losers and permanently impaired companies in core sectors of focus.” Also, the fund doesn’t shy away from vesting in pre-IPO companies if they believe “there is a direct pathway to IPO.”

3. L1 Capital Global Opportunities Fund

Performance 2020: 74.99%

Strategy: This fund invests in structured investments, including convertible bonds. Also, it puts money in primary market transactions to ensure good returns for the investors.

Methodology: The Fund has an absolute return approach with a strong focus on capital preservation and multi-layered risk management.

AUMs (billions): $0.03

Headquarters: Grand Cayman


2. Glenernie Capital Long-Short Fund

Performance 2020: 81.91%

AUMs (billions): $0.05

Headquarters: Grand Cayman

1. Inflection Point Investments Co. Ltd. – CLASS A

Performance 2020: 94.74%

Strategy: Equity Long/Short fund

Methodology: Global Emerging Growth opportunities.

Targets Markets:

AUMs (billions): $0.29

Headquarters: UK

Long-short equity fund. This fund focuses on global Emerging Growth opportunities. long positions in listed small/midcap companies positioned at the bottleneck of 3-5 key Emerging Growth Technology themes.

Inspired by this wonderful article on Value Walk.

Leave a Reply

%d bloggers like this: