Another Tail Risk Hedge Fund Had Eye-Popping March Returns
- LongTail Alpha fund gained almost 1,000% as volatility soared
- Founder says it’s not yet time to take more risk in markets
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A California hedge fund run by a Pacific Investment Management Co. veteran gained 10-fold in March, rewarding investors who bought its “tail risk” protection against a market collapse.
LongTail Alpha’s OneTail Hedgehog Fund II had a return on invested premium of 929% last month as the S&P 500 dropped more than 12%, according to an April 3 letter to clients obtained by Bloomberg. Including client cash held in reserve, the fund returned 157% in March and 400% since its inception Feb. 1. A spokesman for LongTail Alpha declined to comment on the letter or its contents.