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The London-based hedge fund, run by Tiger Cub Johnny de la Hey, is outpacing most other hedge funds this year -- and rebuilding its reputation after a miserable 2008.
One of this year's best performing Tiger Cub-run funds - or best-performing hedge funds, period - is a London-based vehicle that many investors left for dead after it lost more than half its value in 2008.
Managed out of the London-based hedge fund firm Toscafund Asset Management, the Tosca fund is up 16.2 percent this year through May, net of its 1.5 percent management fee and 15 percent performance fee, after posting a strong 5.2 percent gain in May alone. The fund's performance this year is a continuation of an impressive rebound that started when former Tiger Management financials specialist Johnny de la Hey took over as the fund's portfolio manager in December 2008.
After the fund lost 67.54 percent in the first 11 months of that disastrous year under the leadership of firm founder Martin Hughes, de lay Hey took the reins and immediately posted a gain of more than 6 percent in his first month at the helm, December 2008. He has never slumped since. De la Hey steered the fund to a 43.67 percent gain in 2009 and has posted a 22.6 percent annualized gain over the life of his run.
Even more remarkable, and atypical for a Tiger Cub, is that the Toscafund specializes in financial stocks, which fell out of favor after the 2008 global financial crisis...