Digital Assets Report

Newsletter

Like this article?

Sign up to our free newsletter

Peconic extends winning run with 18% YTD gain

Related Topics

Peconic Partners, the $1.8bn long-short hedge fund firm run by Bill Harnisch, has continued a four-year winning run so far in 2024, with the fund up 18% year-to-date, extending a run of outperformance that includes a 26% gain in 2022 when the S&P 500 lost nearly 20%, according to a report by Bloomberg.

The report cites Harnisch in an interview as crediting Peconic’s recent success to a number of bold stock wagers, including a bearish bet against coffee chain Starbucks, as well as bullish positions in long-held infrastructure plays like Quanta Services and Dycom Industries.

A conviction that AI developments and electric vehicles will boost demand for power prompted Harnisch to start buying up utilities in March – including NextEra Energy and Southern Co — and power producers, which represent just 3% of the S&P500, now make up roughly 15% of the firm’s long book.

Meanwhile, the fund’s net leverage — a measure of risk appetite that takes into account long versus short positions — peaked near 50% earlier this year, but has since dropped to 36%, putting Harnisch at odds with many of his long-short equity peers. According to data compiled by Morgan Stanley’s prime brokerage unit, long-short funds last week boosted their equity exposure, driving net leverage to the highest level seen in more than two years.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured