Emerging managers also drew attention, with Glen Kacher's Light Street, a Tiger Cub firm, gaining recognition for its AI-focused investments, including a standout "AI5 basket" that outperformed the Magnificent 7. Meanwhile, Jason Mudrick's credit-focused firm excelled in a challenging market, significantly outperforming the average credit fund's sub-10% return. Mudrick Capital's strategic investment in Vertical Aerospace highlighted its ability to capitalize on distressed opportunities. Overall, the year showcased the potential for both established and lesser-known hedge funds to achieve remarkable results.
Key takeaways:
- Big-name managers like Glen Kacher's Light Street and David Rogers' Castle Hook had impressive returns in 2024, with Castle Hook achieving a 60% gain.
- Jason Mudrick's firm outperformed the market with a 31.7% return, investing significantly in distressed assets like Vertical Aerospace.
- Major hedge funds such as Citadel, D.E. Shaw, and Millennium had good years but generally did not surpass the S&P 500's 23% gain.
- Chris Rokos' fund and other macro funds benefited from geopolitical events, but Castle Hook's performance stood out among them.