5 Investment Funds that Dominated 2011
By Trevor Onions
, last updated January 19, 2012
Hedge funds were put on the ropes by the global financial crisis, but the close of 2011 has proved that several funds still managed to dominate. These top tier contenders outpaced the rest of the industry, even during a year that saw whipsaw volatility. If you're considering putting a lot of money on the line by investing in a hedge fund, then these high returning funds with superior management abilities may be right for you.
Friedberg Global Macro
Albert Friedberg's Global Macro fund succeeded largely on the basis of its manager's predictions. During 2011, Friedberg correctly predicted the enormous draining impact that the unresolved European debt crisis would have on the markets. As a result, he was able to shift his fund's position in a way that minimized exposure to the toxic volatility of the Eurozone. This left his operation emerging as a clear winner, compared to other hedge funds which saw serious losses.
By investing in Chinese tech companies, JAT capital was able to carve out a return in excess of thirty percent, besting many of its hedge fund rivals. This was one of the latest successes of manager John Thaler, who continues his winning streak with tech driven assets across the world. Thaler continually sets the bar high and wins huge gains by properly timing high tech markets, and his reliable record means that 2012 may be another good year to pile money into this fund.
Bridgewater and Associates
Just like JAT Capital and Friedberg Global Macro, the success of the Bridgewater and Associates hedge fund is largely dependent on its leadership. Ray Dalio routinely made excellent picks and sheltered his fund's gains from the severe fluctuations experienced in 2011. Dalio's unorthodox warnings about Eurozone debt proved correct in 2011, and his theorizing about US debt problems in the coming years may pan out as well, positioning him well to expand 2011's sharp gains.
The whopping 40% return that Tiger Global experienced in 2011 owes a great deal to making the right tech investments, much like JAT Capital. Tiger Global's well thought investments in Facebook, LinkedIn, and large Apple positions benefited the fund nicely throughout the year. This fund's novel mixture of dependable and experimental shares marked a serious departure from the riskier assets pursued by other funds, and the return shows that it worked well.
Marshall Wallace Global Opportunities
The Global Opportunities Fund managed by Marshall Wallace isn't as well known as some of the other funds mentioned here. However, it’s nearly thirty percent return in 2011 shows that it may be a rising star in a sketchy market. The fund's gains are all the more impressive in light of its heavy investment in international equities, which saw profits coming from emerging markets, without losing due to strong headwinds from Japanese natural disasters and European debt.
If you're placing mega bucks in a hedge fund, then you'll want to choose one that dominated. While past performance is no guarantee of future returns, as the famous investment adage holds, there's a good chance that these five funds will have another outstanding year in 2012.