Fundamental Equity Long/ Short Funds Drove Gains for This Multi Billion Dollar Multi-Strategy Manager in Q2

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Michelle deBoer-Jones
Published on
Boothbay Power of Constancy

Boothbay Absolute Return Strategies (BBARS) returned 0.57% net for the second quarter, while the BBARS Enhanced Class returned 0.38% net. Year to date, BBARS is up 3.5%, while BBARS Enhanced has gained 4.12%. BBARS has an annualized return of 0.56% since its inception, while BBARS Enhanced has an annualized return of 15.99%.

The Boothbay Diversified Alpha Master Fund (BDAF) returned 0.51% net for the second quarter, while the BDAF Enhanced Fund returned 0.27% net. Year to date, BDAF is up 3.75%, while BDAF Enhanced has gained 4.04%.

For comparison, the HFRX Equity Market Neutral Index is up 4.21% with an annualized return of 0.44% since the funds' inception, while the HFRX Absolute Return Index is up 2.78% year to date with an annualized return of 2.07%.

The HFRX Global Hedge Fund Index is up 2.89% through June with an annualized return of 1.49% since Boothbay's inception, while the S&P 500 gained 14.48% year to date with an annualized return of 10.70% over the same time frame.

Background on Boothbay Fund Management

With $1.8 billion in assets under management as of the beginning of July, the BBARS funds bring Boothbay Fund Management's total AUM to about $2.24 billion. Boothbay is a multi-strategy fund seeking consistent, uncorrelated absolute returns in all environments.  The firm combines proprietary technology with experience to focus on both traditional and non-traditional sources of alpha.

According to its website, Boothbay utilizes a multi-manager investment program "that aims to combine non-correlated positive expectancy strategies into a cohesive portfolio… further enhanced by operational and structural alphas." The firm applies more than 100 different investment strategies to its goals.

Performance and attribution: BBARS

In his second-quarter letter to investors, which was obtained by Hedge Fund Alpha, Ari Glass said 56%

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Michelle deBoer-Jones is editor-in-chief of Hedge Fund Alpha. She also writes comparative analyses of stocks for TipRanks and runs Providence Writing Services. Previously, she was a television news producer for eight years, producing the morning news programs for NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spending a short time at the CBS affiliate in Huntsville.