Many have identified David Teppers Palomino fund as 2009's best performer, raking in 130%. Now a new working paper by the non-profit National Bureau of Economic Research identifies a fund in 2009 that may have topped Tepper, bringing in 132%
One such fund is Barnegat, founded by Robert Treue III and based in Hoboken New Jersey. With assets under management of $450 million, the firm reported a return of 132 percent last year, according to a profile in January by The New York Post.
A paper from the National Bureau of Economic Research, as noted by the Financial Times, details how prices for TIPS and conventional Treasury bonds were "thrown out of sync" by as much as 23 cents on the dollar following the collapse of Lehman.
The NBER said the discrepancy narrowed during 2009, but it still provided hedge funds a massive arbitrage opportunity and led directly to "one of the most successful hedge fund trades in recent memory," reports the FT.
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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