UK-based hedge fund holds off US dominance to crack big league of top hedgie performers

Michael Bow
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A BOUTIQUE London-based hedge fund has smashed into the top three best performing funds in the world this year, breaking the dominance of US hedge fund managers, according to a poll.

Chenavari Investment Managers, which is based near Hyde Park, polled third in a rundown of the year’s 100 best performing hedge funds compiled by Barron’s after its Chenavari Toro Capital IA soared to a three-year compound return of 46.54 per cent a year.

Just 18 of the 100 hedge funds on the list are based outside of the US. The average return of the 100 is 17.42 per cent.

The hedge fund, founded by chief executive Loic Fery – who is also president of French football club FC Lorient – is only one of two UK-based managers in the top 30, with quant-manager OxAM Quant at number 17 in the list.

Chenavari Toro Capital IA, which has given an annual net return of 59.8 per cent since it was launched in June 2009, invests in a bucket of loans that are then wrapped into a single loan and traded, so called asset-backed securities.

Fery, who used to work in credit at French investment bank Calyon, has built Chenavari into a 70-employee business with total assets under management of $3.85bn (£2.54bn).

Chenavari declined to comment.