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Hound was hurt in 2017 by its short bets, which lost about 9.5 percent, according to its yearend letter to clients.

   
  Hound Partners headquarters in New York (courtesy Google Maps)
Hound Partners, the hedge fund firm founded by Jonathan Auerbach, has disappointed investors for a third straight year.

While many other hedge fund managers with ties to legendary Julian Robertson Jr.’s Tiger Management posted very strong gains last year by riding the internet and tech bull market, Auerbach’s long-short fund, Hound Partners Offshore Fund, eked out a 4.39 percent net gain. That’s after a small loss in the second half of 2017, according to the firm’s yearend letter obtained by Institutional Investor’s Alpha.

And while its two long-only funds fared much better, they still fell short of the S&P 500, which surged about 22 percent on a total return basis. Hound Partners Concentrated Fund gained 16.77 percent while Hound Partners Long Fund rose 17 percent, according to the letter.

“While we generated positive returns in all three of our...

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