Polar Asset Management Partners Inc.’s largest hedge fund delivered its smallest annual return since 2011, but still managed to make money despite the sharp correction in global equities and bonds.
(Bloomberg) — Polar Asset Management Partners Inc.’s largest hedge fund delivered its smallest annual return since 2011, but still managed to make money despite the sharp correction in global equities and bonds.
The Canadian firm’s flagship fund gained 1.4% last year, marking its 11th straight year of gains. The fund, managed by Chief Investment Officer Paul Sabourin, follows several strategies, including convertible arbitrage, equity long-short trades and structured credit, according to its website.
Stock and bond markets were roiled in 2022 by economic uncertainty, central banks’ aggressive policies to quell inflation, and Russia’s war in Ukraine. The S&P 500 Index plunged 19% in its worst year since 2008, while Canada’s S&P/TSX Composite Index posted its first annual decline since 2018.
Sabourin’s fund has outperformed both the US and Canadian equity benchmarks since the fund’s launch in 1991.
Polar’s $1.7 billion US equity long-short fund, managed by Bill Peckford, posted a 3.4% return last year, maintaining a record of never reporting a calendar-year loss since its inception in 1997. Its lower-volatility strategy has resulted in annual returns of 5.4% over 10 years, net of fees, underperforming the S&P 500 Total Return Index by about 7 percentage points a year.
Polar’s microcap fund lost nearly 10% after three years of gains.
The Toronto-based firm didn’t respond to a request for comment.
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