Rady Asset Management
Rady Asset Management | Hedge Fund Notes
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Resource #2: Not all hedge funds are have fallen on hard times.
Sporting a mix of short positions and long-term holdings in everything from medical-device companies to oil funds, the Contrarian Value Investments fund has posted a slim 1.7% drop for the year through Oct. 31.
If that sounds like faint praise, consider this: the Standard & Poor's 500, which the fund uses as a benchmark, was off nearly 40% since the beginning of the year on a trailing return basis, as turmoil in global stock and bond markets continues to wipe away value.
The fund's performance validates the investing philosophy of its founder, Harry Rady, who runs it out of his La Jolla, Calif. offices. While many hedge funds, particularly so-called quant funds, use computers to pick stocks and make trades, Rady uses programs to identify targets that have good growth prospects and are trading cheaply.