In this article, we discuss 5 worst performing hedge funds of 2021. If you want to read our detailed analysis of these hedge funds, go directly to 10 Worst Performing Hedge Funds of 2021.
5. Brevan Howard
YTD Loss as of December 27, 2021: 7.4%
Brevan Howard is a hedge fund based in London. It is led by Alan Howard, a British investor with a personal net worth of close to $2.8 billion. The portfolio value of the fund, at the end of the third quarter of 2021, was around $769 million. According to Bloomberg, the flagship AS Macro Fund of the investment firm tumbled more than 4% in October, due in part to the upheaval in the bonds market. This was the worst performance for this fund since it debuted in 2017. It was also one of the reasons behind the poor performance of Brevan Howard in 2021.
Brevan Howard has invested a lot of money in Cloudflare, Inc. (NYSE:NET), a company that owns and runs a cloud platform which provides network services. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cloudflare, Inc. (NYSE:NET) as of September 2021, with 1.1 million shares worth more than $129 million.
In its Q4 2020 investor letter, Alger Mid Cap Focus Fund, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE:NET) was one of them. Here is what the fund said:
“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge computing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.
While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”
