Some hedge fund giants are posting monster returns in 2022

Some hedge fund giants are posting monster returns in 2022

Looks like someone has a Monday case. It is Dan DeFrancesco and we hope you got through the weekend with your New Year’s resolution intact. But even if not, who cares? Nobody counts. Just get back on track.

On demand, we have stories of a billionaire returning to the top of a company he started (but probably not the one you’re thinking of), more trouble in cryptoland for a key player in the industry, and the largest modern house in the US .

Also, Goldman Sachs is expected to begin one of its biggest rounds of layoffs this week, with up to 3,200 job cuts.

But first we have hedge fund returns.

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Photo by Citadel CEO Ken Griffin


1. The good, the bad, and the ugly on the buy side.

It’s hedge fund yield season, and the kid’s being an idiot this year.

Insider’s Alex Morrell has a breakdown of how some of the flagship strategies have performed at top hedge funds like AQR, Citadel, DE Shaw and Point72.

Alex’s story gets down to the nitty gritty — and more importantly, the actual numbers — but the important thing is this: While 2022 has been a pretty terrible year for the hedge fund industry, some of the industry’s top funds have it absolutely destroyed.

And honestly, that’s the way it should be.

If I had the kind of money that would allow me to invest in a hedge fund – and one day maybe I could if a few of my 10-game parlay bets hit – I wouldn’t care how good it was cuts off when the market goes up. I would like to know what it was like when everything was down.

Everyone, and I mean EVERYONE, invested well in 2021. You could have missed a double-digit return.

The past year has been an absolute minefield of rate hikes, inflation, and the tech-stock apocalypse. And while finding a way to make money in such an environment might seem impossible, that’s exactly when I’d expect a hedge fund to show up.

Because if that’s not the case, then what am I paying you for?

PS If you are with a fund and want to brag about your returns you can message Alex here.

Check out the returns of some of the industry’s top companies.

In other news:

Will Smith played a fictionalized version of himself

Will Smith played a fictionalized version of himself in The Fresh Prince of Bel-Air.

Warner Bros.

2. FTX spent $40 million on expenses over the course of 9 months. I didn’t catch up on my latest issue of Effective Altruism Monthly, but I’m not sure how that fits into the philosophy. Here’s a breakdown of where some of that money went. Meanwhile, Sam Bankman-Fried, the disgraced founder of FTX, would value a portion of those $450 million Robinhood shares to fund his legal defense, though he allegedly bought those shares with borrowed client money.

3. The Return of the King? Amazon is doing so badly that some insiders are speculating about a possible return of founder Jeff Bezos. I’m not sure why anyone with that much money would want to go back to work, but that kind of mindset is probably why I’ll never be rich enough to be in this position. More on what a possible Bezos sance would look like.

4. A major player in the crypto ecosystem is having a tough time. Digital Currency Group, which owns a number of companies in this space, is dismantling the headquarters of its wealth unit. DCG is also in the midst of a dispute with Gemini over whether Genesis, which it owns, borrowed $900 million from crypto exchange customers. Perhaps the two sides can smooth things over at a rock show by the Winklevoss twins, the co-founders of Gemini.

5. FTX investors, regulators would like a word. The SEC wants to know why investors in the bankrupt crypto exchange missed all the warning signs, Reuters reports. Maybe Taylor Swift should take a due diligence class.

6. A Wells Fargo employee was reportedly so drunk on a flight that he peed on a woman in business class. The bank fired the unnamed man, who was the firm’s vice president and lived in Mumbai. Read more here.

7. Would you like to buy or rent? We’ll cover you. Abdul Muid, a New York City realtor, offered some advice on how to navigate the market and get the best deals. Here’s what you should do.

8. Turns out it might actually have been the shoes. A pair of Jordan 11 “Concords” worn by Michael Jordan in 1996 recently sold for more than $92,000. For this reason, high-end collectibles could be an asset class to consider.

9. ETF = exclusion towards women. According to Bloomberg, only 11% of US fund managers are women in the $6.5 trillion US ETF industry. Here’s how one fund is trying to change that with an all-female exchange-traded fund investment team.

10. A new throne for the Fresh Prince of Bel Air. The largest modern home in the US, at a whopping 105,000 square feet, has just been sold to Fashion Nova’s billionaire CEO for $126 million. Check out the inside of the Los Angeles Megamansion.

Curated by Dan DeFrancesco in New York. Feedback or tips? Email, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.

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