The 50 best performing hedge funds liked these stocks most at Q1 end

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We can assume that the 50 best performing hedge funds over the last few years have been doing something right. The managers of the top 50 funds exploited an edge the other 930 hedge funds in WhaleWisdom universe didn’t have.

No doubt there is a random element to fund performance, but the 50 best performing hedge funds have averaged a 15.6% return over the last three years. Compare that to a 6.5% average total return for the S&P 500 over the same period.

50 best performing hedge funds based on WhaleScore

98HUNT LANE CAPITAL LP 90MAPLELANE CAPITAL, LLC
97ALTA PARK CAPITAL, LP90ANCIENT ART, L.P.
96ALTIMETER CAPITAL MANAGEMENT, LP90FIRST LIGHT ASSET MANAGEMENT, LLC
96ASHFORD CAPITAL MANAGEMENT INC90PDT PARTNERS, LLC
95SHANNON RIVER FUND MANAGEMENT LLC90NANTAHALA CAPITAL MANAGEMENT, LLC
95WHALE ROCK CAPITAL MANAGEMENT LLC90LIGHT STREET CAPITAL MANAGEMENT, LLC
95HARBOURVEST PARTNERS LL89ICM ASSET MANAGEMENT INC
95DRAGONEER INVESTMENT GROUP, LLC89SG CAPITAL MANAGEMENT LLC
95CASDIN CAPITAL, LLC89GRANITE INVESTMENT PARTNERS, LLC
94HAWK RIDGE CAPITAL MANAGEMENT LP89TAMARACK ADVISERS, LP
94POTRERO CAPITAL RESEARCH LLC89NIGHT OWL CAPITAL MANAGEMENT, LLC
93BRANDYWINE MANAGERS, LLC89DORSAL CAPITAL MANAGEMENT, LLC
93VISTA EQUITY PARTNERS MANAGEMENT89TEGEAN CAPITAL MANAGEMENT, LLC
93CONTOUR ASSET MANAGEMENT LLC89ULYSSES MANAGEMENT LLC
93SCGE MANAGEMENT, L.P.88STOCKBRIDGE PARTNERS LLC
93AO ASSET MANAGEMENT, LP88RAINE CAPITAL LLC
93CRESCENT PARK MANAGEMENT, L.P.88ACUTA CAPITAL PARTNERS, LLC
92ARCHON CAPITAL MANAGEMENT LLC88TELEMARK ASSET MANAGEMENT, LLC
92CROSSLINK CAPITAL INC87CANNELL CAPITAL LLC
92ARDEVORA ASSET MANAGEMENT LLP87ATALAN CAPITAL PARTNERS, LP
92SLATE PATH CAPITAL LP87SEVEN EIGHT CAPITAL, LP
92GLYNN CAPITAL MANAGEMENT LLC87RGM CAPITAL, LLC
92SPARK INVESTMENT MANAGEMENT LLC87NITORUM CAPITAL, L.P.
91S SQUARED TECHNOLOGY, LLC87TENSILE CAPITAL MANAGEMENT LLC
91ARISTEIA CAPITAL LLC86G2 INVESTMENT PARTNERS MANAGEMENT
3 year returns of the 50 best performing hedge funds (light green) vs the S&P 500 total return (dark green). Source: WhaleWisdom

The hedge fund returns are based on 13F filings — portfolio disclosures made by large institutional investors 45 days after the end of each quarter.

The 50 top hedge funds over last 3 years averaged returns 2.4x the S&P 500

So as a group, the 50 best performing hedge funds averaged 13F returns 2.4x the market over the last three years. I’ve used WhaleWisdom’s WhaleScore ranking to determine the top funds.

WhaleScores use a mixture of return and risk measures to quantify past risk-adjusted performance and predict future outperformance. Filers are ranked in terms of these measures and scored against each other and against the S&P 500. You can read more about WhaleScores here. For our list, I’ve filtered out funds with less than 11 holdings.

Below is a list of the top 20 stocks held by the top performing funds. The highest consensus holdings, if you will. To construct this list: First, the percent a stock represents in each fund’s portfolio is determined. Then all securities’ percent of portfolio are tallied.

Q1 top 20 consensus holdings of 50 best performing hedge funds – includes date stock first made the list and subsequent return

Stock NameTotal Return – since initiatedOriginal Purchase Date
CPB Campbell Soup Co. -12.50% 11/16/15
AABA Altaba Inc. (Yahoo) 47.60% 2/16/16
TWLO Twilio Inc 60.10% 11/15/18
AMZN Amazon.com Inc. 193.10% 5/18/15
FB Facebook Inc 130.20% 8/15/13
SWI SolarWinds Corp -7.00% 2/15/19
MSFT Microsoft Corp. 156.00% 8/17/15
CHTR Charter Communications 66.60% 5/16/14
NOW ServiceNow Inc 194.30% 2/15/17
NFLX Netflix Inc -1.40% 2/15/19
ZEN Zendesk Inc 10.40% 2/15/19
GOOG Alphabet Inc. Class C 46.10% 8/17/15
UAL United Continental Holdings 22.60% 11/16/15
RNG Ringcentral Inc 15.40% 2/15/19
DATA Tableau Software Inc 6.40% 8/15/18
PANW Palo Alto Networks Inc 27.60% 2/15/18
BABA Alibaba Group Holding Ltd -11.10% 5/16/19
TLND Talend SA ADR -3.40% 5/16/19
CRM Salesforce.com Inc. 16.70% 5/16/18
PYPL PayPal Holdings Inc -3.50% 5/16/19

Here are the 10 stocks most most purchased by the 50 top performing hedge funds in Q1. The return since 13Fs were filed on May 15 is also shown.

Stock NameTotal ReturnOriginal Purchase Date
NOW ServiceNow Inc -4.70% 5/16/19
AABA Altaba Inc. (Yahoo) -11.80% 5/16/19
SVMK SVMK Inc 1.70% 5/16/19
SIRI Sirius XM Holdings Inc -4.60% 5/16/19
GS Goldman Sachs Group Inc -3.60% 5/16/19
WP Worldpay Inc Class A 1.20% 5/16/19
SE Sea Ltd ADR 13.60% 5/16/19
SQ Square Inc -4.00% 5/16/19
LYFT LYFT Inc 4.50% 5/16/19
AMAT Applied Materials Inc. -4.10% 5/16/19
Disclaimer:

Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this blog is meant for educational and informational purposes only. Do your own research before investing and don’t risk more than you can afford to lose. This article expresses my own opinions, and I am not receiving compensation for it (other than from WhaleWisdom). I do not have a business relationship with any company whose stock is mentioned in this article. I or my associates may hold positions in the stocks discussed.