Platinum Partners Up In 2013; 11th Straight Up Year

Some might consider Platinum Partners' 2013 performance, estimated at 10.32% according to an investor letter reviewed by ValueWalk, to be subpar when compared to nearly 30% index returns found in the equity markets.  But that misses the point.

Platinum Partners is a diversified fund with many niche strategies with a significant focus on risk management.  Since its founding in 2003 it has never had a losing year.  But perhaps most significant to hedge fund allocators might be the fact that while the annualized standard deviation is 4.96%, the vast majority of that volatility came from the upside.  Downside deviation was just 0.88%.

“For us controlling drawdowns and downside volatility is as important as the overall return. We always look at returns on...