Key Takeaways
- • Tiger Global Management (Chase Coleman) posted 33% gains in 2019, substantially outperforming the S&P 500's 31% return, with its flagship fund surging 10% in Q4 2019 when most hedge funds posted losses, positioning it as a finalist for the 2020 Hedge Fund Awards.
- • Perceptive Advisors (Joseph Edelman) delivered a 54% return in 2019 through biotech-focused equity strategies, earning recognition in the equity-focused category alongside five other finalist managers including Melvin Capital Management and Glenview Capital Partners.
- • Pershing Square Capital (Bill Ackman) rocketed 58.1% in 2019, winning standout activist strategy recognition, and maintained momentum into 2020 with a 2.8% year-to-date gain through early March despite coronavirus-induced market turmoil through newly implemented hedges.
- • The 2019 hedge fund performance landscape was dominated by equity and activist strategies, with multiple managers capturing double-digit and triple-digit returns after the industry's poor 2018 results, reflecting broad market recovery and selective manager skill.
- • Institutional Investor's 18th annual Hedge Fund Industry Awards recognized elite managers across equity-focused and activist strategy categories, benchmarking performance against the S&P 500's 31% 2019 gain.
Summary
Following a challenging 2018, the hedge fund industry rebounded sharply in 2019, with several elite managers substantially outperforming broad equity indices. The S&P 500 gained 31% for the year, yet a select group of hedge fund managers posted even stronger results, earning finalist status in Institutional Investor's 18th annual Hedge Fund Industry Awards.
Equity-focused hedge fund strategies dominated the performance rankings. Chase Coleman's Tiger Global Management, which had succeeded in posting double-digit gains even during the difficult 2018 market environment, extended its winning streak with a 33% total return for 2019. The firm's flagship hedge fund demonstrated particular strength in the final quarter, surging 10% when many of its peers posted significant losses, demonstrating both skill and diversification benefits. Joseph Edelman's Perceptive Advisors achieved exceptional results through biotech-focused equity investing, posting a 54% return for the year. Larry Robbins' healthcare-oriented Glenview Capital Partners gained more than 26% in 2019. Additional finalists in the equity category included Lucerne Capital Management, Melvin Capital Management (led by SAC Capital alum Gabriel Plotkin), and Sarissa Capital Management (led by Alex Denner).
Activist investment strategies, characterized by concentrated long positions and engagement-oriented approaches, also generated substantial outperformance. Bill Ackman's Pershing Square Capital achieved a standout 58.1% return in 2019, making it among the year's strongest performers. Notably, Ackman demonstrated continued success into early 2020, reporting a 2.8% gain for Pershing Square Holdings through early March despite significant market disruption from coronavirus-related volatility, attributable to hedging strategies he had recently implemented. This performance across multiple market cycles underscored the value of sophisticated risk management in volatile periods.
The concentration of strong performance among equity and activist managers reflected broader 2019 market dynamics, in which equity markets recovered substantially from 2018's weakness and tactical positioning became increasingly important for differentiated returns.
Equity-focused hedge fund strategies dominated the performance rankings. Chase Coleman's Tiger Global Management, which had succeeded in posting double-digit gains even during the difficult 2018 market environment, extended its winning streak with a 33% total return for 2019. The firm's flagship hedge fund demonstrated particular strength in the final quarter, surging 10% when many of its peers posted significant losses, demonstrating both skill and diversification benefits. Joseph Edelman's Perceptive Advisors achieved exceptional results through biotech-focused equity investing, posting a 54% return for the year. Larry Robbins' healthcare-oriented Glenview Capital Partners gained more than 26% in 2019. Additional finalists in the equity category included Lucerne Capital Management, Melvin Capital Management (led by SAC Capital alum Gabriel Plotkin), and Sarissa Capital Management (led by Alex Denner).
Activist investment strategies, characterized by concentrated long positions and engagement-oriented approaches, also generated substantial outperformance. Bill Ackman's Pershing Square Capital achieved a standout 58.1% return in 2019, making it among the year's strongest performers. Notably, Ackman demonstrated continued success into early 2020, reporting a 2.8% gain for Pershing Square Holdings through early March despite significant market disruption from coronavirus-related volatility, attributable to hedging strategies he had recently implemented. This performance across multiple market cycles underscored the value of sophisticated risk management in volatile periods.
The concentration of strong performance among equity and activist managers reflected broader 2019 market dynamics, in which equity markets recovered substantially from 2018's weakness and tactical positioning became increasingly important for differentiated returns.
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