Omega Advisors, Inc. Up 2.3% YTD; Benefits From Macro Bets And Short Positions

Leon Cooperman's Omega Advisors gained 0.8% in the second quarter before fees and expenses. Year-to-date the fund is up 2.3%, beating the S&P 500, which is up only 1.2% year-to-date. However, Omega is lagging its wider hedge fund peer group, the Russell 2000 and Nasdaq Index, all of which have returned 4.0%, 4.1% and 5.3% respectively year-to-date, according to a letter to investors reviewed by ValueWalk.

During the second quarter, Omega’s long positions held the fund back while short positions and derivative bets produced the best returns. Specifically, Omega’s developed-country long equity positions subtracted 109 basis points from gross performance. While developed-country short positions equities, index futures, and options contributed 65 basis points to the portfolio’s return. Other positions in...