Hound Partners Hiring Despite Collapse In Hedge Fund Dispersion

2017 was a mixed year for Tiger cub Jonathan Auerbach‘s fund, Hound Partners. According to Hound Partners letter for the full year and fourth quarter, a copy of which has been reviewed by ValueWalk, the Hound Partners Offshore fund returned 6.3% gross, and 4.3% net for 2017 as double-digit gains on the long side was offset by a poor performance on the short side.

Indeed, the letter notes that for the year the long equity portfolio contributed 15.61% to the gross return while the short equity portfolio lost 9.48%. Hound Partners Long Fund, Ltd, which does not short, produced a performance of 17% net for investors during the year.

[klarman]

In his letter to investors, Auerbach laments this performance writing that while “we generated positive returns in all three of our funds” he believes that the hedge fund should “have performed better in this environment.”