Scopia "The Average Hedge Fund Seems To Be Destroying Alpha On Its Shorts"

Short positions contributed to absolute returns in 2014, an elusive source of alpha for many hedge fund managers

After apparently over-subscribing their investor base, Jeremy Mindich and Matt Sirovich's Scopia PX International went on to reward its investors with a strong fourth quarter, delivering investors 5.2 percent returns, slightly outperforming the S&P 500’s 4.9 percent performance.

After seven years of “alternating” between strong and flat years, the fund was “thrilled and relieved” to have a second strong year in a row. In 2014 the fund returned 12.1 percent to investors, coming off 2013 when they delivered 11.2 percent.  The S&P 500 index, which the fund benchmarks its performance to, was positive by 13.5 percent and 32 percent in 2014 and 2013 respectively.

The...