JAT Capital is Doing Well... Real Well
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According to reports Wednesday, John A. Thaler's $3 billion long-short hedge fund JAT Capital is up 31 percent over 2011.
JAT benefited mostly from it's neutral and short positions, offsetting losses from long positions.
Capital inflows for JAT have also been good, increasing three-fold since the start of the year. According to sources, JAT stopped taking investments at the start of October, but may open back up at the beginning of next year.
The move is even more impressive when considering hedge funds, on average, dropped 0.9 percent in 2011, according to Bloomberg data.
Sources said JAT has about 200 percent gross exposure through the use of leverage to magnify longs and short, and a market-neutral position with zero net exposure.
JAT held one of it's largest long positions in Baidu (Nasdaq: BIDU), which fell 27 percent just last month. Shorts in other China-based Internet stocks offset the loss.
Other stats include: JAT investing half of it's money into companies with market caps of less than $10 billion, and the majority of positions can be liquidated within five business days.
The news comes in affirmation to reports at the end of September JAT was killing it.
JAT benefited mostly from it's neutral and short positions, offsetting losses from long positions.
Capital inflows for JAT have also been good, increasing three-fold since the start of the year. According to sources, JAT stopped taking investments at the start of October, but may open back up at the beginning of next year.
The move is even more impressive when considering hedge funds, on average, dropped 0.9 percent in 2011, according to Bloomberg data.
Sources said JAT has about 200 percent gross exposure through the use of leverage to magnify longs and short, and a market-neutral position with zero net exposure.
JAT held one of it's largest long positions in Baidu (Nasdaq: BIDU), which fell 27 percent just last month. Shorts in other China-based Internet stocks offset the loss.
Other stats include: JAT investing half of it's money into companies with market caps of less than $10 billion, and the majority of positions can be liquidated within five business days.
The news comes in affirmation to reports at the end of September JAT was killing it.
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