Morning Coffee

Morning Coffee – Canadian and U.S. Comments for Wednesday January 17, 2007

Vertex (n.) – 1. the highest point of anything; apex. 2. the point of intersection of the two sides of an angle. 3. a young, budding Berkshire Hathaway or Quantum Fund?

Bloomberg rated every hedge fund under the sun relative to its style category: emerging markets, distressed, event driven, long/short equity, fixed income, and macro. In the “event-driven” category, Vancouver-based Vertex One Asset Management took top spot amongst non-U.S. names with its 24.2% annualized average three-year return. Including U.S. managers, Vertex scored third behind two firms that returned 28.4% and 26.9% (i.e. it was a tight race).

Just in case you are suspect of a lucky three-year stretch, consider Vertex’s average annual return since inception in February of 1998 is 24.09% (standard deviation of 16.77%, and 70.09% winning months). That sort of consistency is what made Warren Buffett and George Soros famous.

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