This Fund’s Picks Returned 52% In Q1 And You’ve Never Heard Of It

You’ve probably read a million stories about how Bill Ackman‘s been getting creamed lately, how hedge funds continue to underperform indexes, and how redemptions continue to rock major hedge funds. But have you read one story about Leonard A. Potter‘s Wildcat Capital Management, whose stock picks gained 52% in the first-quarter according to our calculations (based on the weighted average returns of its eight positions in stocks with a market cap of at least $1 billion)? No, no you haven’t.

The mainstream media is predictable if nothing else, and who can blame them? Misery and negativity generate clicks because, let’s face it, many of us feel better about ourselves when we read about the failings of others, and that goes double or triple for the failings of billionaire money managers and their wealthy investors.

Of course, just because the media excessively dwells on hedge funds underperforming the market doesn’t mean they’re not right, and by no means do we advocate that investors pay exorbitant fees to invest with them, nor should they blindly mimic their picks. However, where they can find success is in betting on only the top ideas of the top performing hedge funds, like Wildcat Capital, which can be identified in advance. One need only look to Sessa Capital, another fund you’ve never heard of which was the top-performing fund in our database in the third-quarter and which has since put together two more big quarters for 1-year stock pick returns of 205%.

That’s what we do and our flagship strategy has returned 44.2% since February 2016 vs. a 29.6% gain for the S&P 500 index ETF (SPY). Our most recent stock picks, beat the market by 5 percentage points in the three months since. 

Now then, let’s check out the Q1 performance of a handful of Wildcat Capital’s stock picks to see how the fund pulled off its impressive quarter and whether it’s been sustained in the second-quarter.

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