Top 10 Hedge Fund Trades of 2007


Top 10 Hedge Fund Trades



The top 10 Hedge Fund Trades of 2007 as written up by Dow Jones.



Hedge Fund Trade #1: Freeport McMoran Copper & Gold
Hedge Fund Manager: Atticus ManagementProfit: $800 million

The New York-based hedge fund hit the mother lode for the second year in the row, scoring paper gains of at least $800 million through its holding in the mining giant.

Hedge Fund Trade #2: MBIA Inc., Ambac Financial
Hedge Fund Manager: Pershing Square Capital ManagementProfit: $500+ million

William Ackman’s longtime gamble that bond insurance companies would run into trouble finally paid off this year as mortgage loans to high-risk borrowers started going bad and credit markets stumbled.

Hedge Fund Trade #3: Foster Wheeler
Hedge Fund Manager: Tontine PartnersProfit: $426 million

Sage investments in engineering and construction companies helped cushion the Greenwich, Conn.-based firm’s losses in finance and housing.

Hedge Fund Trade #4: Union Pacific, Other U.S. Railroads
Hedge Fund Manager: Atticus ManagementProfit: $387 million

A counterintuitive bet in a sector that typically slows down as aneconomic cycle peaks paid off handsomely for Timothy Barakett’s shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.

Hedge Fund Trade#5: First Solar
Hedge Fund Manager: Maverick CapitalProfit: $350+ million
After a stormy 2006, Maverick rebounded in 2007 thanks to its investments in solar and alternative energy. First Solar was one of the sector’s hottest performers.

Hedge Fund Trade #6: Crown Castle International, American Tower
Hedge Fund Manager: Glenview Capital ManagementProfit: $319 million

Larry Robbins’ New York-based hedge fund got all the right signals when it targeted the wireless towers sector. The trades crowned a successful year that saw the firm up 24%.

Hedge Fund Trade #7: CF Industries
Hedge Fund Manager: Dawson-Herman Capital ManagementProfit: $160 million

Ethanol companies suffered this year, but taking a long view of the biofuels sector helped the New York-based firm cultivate a neat return from the fertilizer company.

Hedge Fund Trade #8: Onyx Pharmaceuticals
Hedge Fund Manager: Meditor Capital ManagementProfit: $155 million

Having booked some profits in Onyx at the beginning of the year, the UK-based firm held on to the company’s shares to benefit from a further jump when its cancer drug beat analysts’ estimates.

Hedge Fund Trade #9: Chipotle Mexican Grill
Hedge Fund Manager: Tremblant Capital GroupProfit: $95 million

When other firms were asking for the check, Brett Barakett went back for seconds in this fast-food chain that promises healthy fare and delivered a healthy profit for the $4 billion-plus firm.

Hedge Fund Trade #10: United Therapeutics Corp.
Hedge Fund Manager: Shunway Capital PartnersProfit: $73 million

The New York-based firm gradually increased its stake in United Therapuetics during the year, gaining big-time on good news about the company's pulmonary hypertension drug.
Read more articles like this within the Hedge Fund Performance Category of this hedge fund blog.

- Richard

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Article Source:
Dow Jones & FT

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