Symmetric, a hedge fund research firm, released its latest quarterly hedge fund rankings through March. The company analyzes managers’ long positions based on quarterly SEC filings and ranks them on what it calls StockAlpha, which “measures a hedge fund manager's ability to pick stocks that outperform their corresponding sector. The commonly used Brinson-Fachler performance attribution methodology provides the foundation for the Symmetric approach.”
The firm notes that over the past three years, just over half of managers analyzed have demonstrated positive stock-picking skill (stocks that outperformed their sectors).
Health-care manager Broadfin Capital topped Symmetric’s first-quarter rankings, followed by Glenn Greenberg’s Brave Warrior Advisors.
|Name||3 Yr StockAlpha Magnitude||3 Yr StockAlpha Sharpe|
|Brave Warrior Advisors||0.1819||2.29|
|Matrix Capital Management||0.1164||1.24|
|Pershing Square Capital Management||0.1032||1.15|
|Abrams Bison Investments||0.1024||1.43|
|Senator Investment Group||0.1015||2.71|
|V3 Capital Management||0.0981||1.01|
|Dorsal Capital Management||0.0947||0.98|
|Brenner West Capital Advisors||0.0941||1.38|
|Steadfast Capital Management||0.0936||1.95|
|Locust Wood Capital Advisers||0.0806||1.86|
|Tremblant Capital Group||0.0658||0.96|
|Southpoint Capital Advisors||0.0612||1.25|
|Echo Street Capital Management||0.0477||1.01|
|Magellan Asset Management||0.0409||1.16|
|Akre Capital Management||0.039||1.03|
Symmetric says top-20 managers have added over more than 25% of StockAlpha above the average hedge fund over the past three years.
A basket of 15 activist funds shows the strategy has produced significantly higher StockAlpha vs. the average hedge fund.
Data source: Symmetric