Half Moon Capital Partners gained 12.9% net during the second quarter, beating the S&P 500’s 10.9% return, the Russell 2000’s 8.5% gain, and the HFRI Hedge Fund Index’s 7.9% jump. The fund’s average net exposure during Q2 was 97.7%.
Long/ short returns
Half Moon’s long book generated a 12.4% return during the second quarter, contributing 16% to its performance as management grossed-up certain positions during the April turmoil. Unfortunately, the fund’s short book generated a gross return of -9.1% during Q2, but on a dollar-contribution basis, Half Moon’s shorts subtracted 2.9% from its gross attribution.
The fund aimed to offset the temporary selling pressure on certain positions using selective industry hedges. The Half Moon team also pressed certain shorts into the April upheaval and then covered those positions amid the unfolding of events.
In his second-quarter letter to investors, which was obtained by Hedge Fund Alpha, Eric DeLamarter reported that their best-performing longs were Primoris Services Corp (NYSE:PRIM), LYFT Inc (NASDAQ:LYFT),
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