Key Takeaways
- • 2018 Hedge Fund Industry Crisis: The hedge fund industry posted its worst aggregate performance since the 2008 financial crisis, with nearly two-thirds of all funds losing money, creating a challenging backdrop for the 2019 awards season.
- • Top Equity Performers: Cadian Capital led equity-focused nominations with a 20% return; Tiger Global Management gained 13.6% in its long-short fund and 3.4% in Tiger Global Long Opportunities; Jericho Capital Partners achieved 12.5% returns in tech-focused strategies.
- • Macro Fund Outperformance: Element Capital Management posted 17.3% gains under Jeffrey Talpins' management, while Bridgewater Associates' Pure Alpha strategy returned 14.6%—its best performance in seven years—earning both nominations for Macro Hedge Fund Manager of the Year.
- • Multistrategy Recognition: Citadel's Wellington fund added 9.1% in 2018, securing nominations for both Multistrategy Hedge Fund of the Year and Institutional Hedge Fund Manager of the Year.
- • Institutional Investor's 17th Annual Awards: The hedge fund industry's leading performers are being recognized at Institutional Investor's 17th annual Hedge Fund Industry Awards, celebrating managers who delivered gains despite severe market volatility and widespread industry losses.
Summary
The 2018 hedge fund landscape presented one of the industry's most challenging years on record. The sector posted its worst aggregate performance since the 2008 financial crisis, with nearly two-thirds of all hedge funds finishing the year in negative territory. Against this difficult backdrop, a select group of elite managers distinguished themselves by delivering positive returns, making them standouts worthy of recognition at Institutional Investor's 17th annual Hedge Fund Industry Awards.
In the equity-focused category, several managers demonstrated exceptional performance. Cadian Capital, led by Eric Bannasch, posted a 20% return, the strongest showing among equity-focused nominees. Tiger Global Management, founded by Tiger Management alum Chase Coleman, achieved a 13.6% gain in its long-short Tiger Global fund and a 3.4% return in Tiger Global Long Opportunities, securing nominations in both the Equity-Focused and Institutional Hedge Fund Manager of the Year categories. Josh Resnick's tech-focused Jericho Capital Partners added 12.5%, rounding out the category alongside Darsana Capital Partners, Deerfield Management, and Falcon Edge Capital.
The macro hedge fund space also delivered strong results. Jeffrey Talpins' Element Capital Management rose 17.3% in 2018, while Ray Dalio's Bridgewater Associates posted a 14.6% gain in its flagship Pure Alpha strategy—marking the fund's best performance in seven years. Both managers earned nominations for Macro Hedge Fund Manager of the Year among six total candidates.
In the multistrategy segment, Citadel demonstrated resilience with a 9.1% return in its Wellington fund, earning the firm nominations for Multistrategy Hedge Fund of the Year as well as Institutional Hedge Fund Manager of the Year. These recognitions underscore the importance of portfolio construction and risk management during periods of significant market stress, as managers who maintained discipline and executed their strategies effectively significantly outpaced industry peers.
In the equity-focused category, several managers demonstrated exceptional performance. Cadian Capital, led by Eric Bannasch, posted a 20% return, the strongest showing among equity-focused nominees. Tiger Global Management, founded by Tiger Management alum Chase Coleman, achieved a 13.6% gain in its long-short Tiger Global fund and a 3.4% return in Tiger Global Long Opportunities, securing nominations in both the Equity-Focused and Institutional Hedge Fund Manager of the Year categories. Josh Resnick's tech-focused Jericho Capital Partners added 12.5%, rounding out the category alongside Darsana Capital Partners, Deerfield Management, and Falcon Edge Capital.
The macro hedge fund space also delivered strong results. Jeffrey Talpins' Element Capital Management rose 17.3% in 2018, while Ray Dalio's Bridgewater Associates posted a 14.6% gain in its flagship Pure Alpha strategy—marking the fund's best performance in seven years. Both managers earned nominations for Macro Hedge Fund Manager of the Year among six total candidates.
In the multistrategy segment, Citadel demonstrated resilience with a 9.1% return in its Wellington fund, earning the firm nominations for Multistrategy Hedge Fund of the Year as well as Institutional Hedge Fund Manager of the Year. These recognitions underscore the importance of portfolio construction and risk management during periods of significant market stress, as managers who maintained discipline and executed their strategies effectively significantly outpaced industry peers.
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