Hedge Funds

How the best hedge funds are smoking the competition

The most successful funds in recent years have pursued multiple strategies, while avoiding risk

Hedge funds operate differently now compared to the buccaneering past
Hedge funds operate differently now compared to the buccaneering past Photo: Photo by Nicolas Economou/NurPhoto via Getty Images

The stars of the hedge fund world used to take big swings and sometimes hit grand slams, like John Paulson when he shorted the US housing market before the 2007-09 financial crisis and made $20bn.

But swing-for-the-fence hedge funds haven’t been the big winners in recent years. Instead, the best returns have come from the multi-strategy, multi-manager hedge funds that rivals derisively call “pod shops”.

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