Canadian hedge fund managers are posting strong returns, according to The Globe and Mail.
A group of Canadian managers emerged in the top 200 of nearly 2,280 around the world that are ranked by one-year returns, according to data from Bloomberg Financial Services. Some Canadian funds have posted returns of 40 % or more over the past year, even as funds grew and it become more difficult for them to move into and out of stocks and other positions as quickly.
“A lot of American hedge fund managers are still learning about investing in the energy patch,” Raynor Burke, fund analyst at National Bank Financial, observed. Some Canadian managers have outperformed their American peers because they have been investing heavily in the hot sector of energy, agreed Bob Thompson, an alternative investment strategist at Canaccord Capital.
Otto Spork, president of Sextant Capital Management, is one of the managers who made the top 200 list. He runs the $13 million hedge fund and has benefited from investing in smaller companies in the mining and energy sector.
Gold stocks have helped top-performing manager Warren Irwin, president of Rosseau Asset Management, with his $152.9 million fund. “There is a lot more opportunity in Canada” for domestic hedge fund managers because the markets are less developed and there is less competition, Thompson said. “They are in a kind of sweet spot.”
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