By Svea Herbst-Bayliss BOSTON (Reuters) – A few years ago, Ratan Capital Management faced survival problems due to bad bets that reduced its capital and its founder settled regulatory charges on information sharing. Now the hedge fund is back in the limelight after posting stellar returns last year that could help attract new investors. Ratan Capital, led by Nehal Chopra, posted a 98% return in 2020, the best in its history, thanks to long-standing investments in companies that provide business solutions, according to a letter sent to investors and seen by Reuters. Its performance outpaced the hedge fund’s average return of 11.6%, as well as that, which gained 16% last year. Investments in Vertiv Holding Co, RingCentral (NYSE 🙂 Inc and Clarivate PLC were the biggest winners, all with double-digit earnings, Chopra wrote. They more than made up for the losses of the online ticket ordering business Trainline PLC, and health insurance claims processor Multiplan Corp. Chopra declined to comment. It‘s too early to tell if the outsized returns lead to fresh capital, but Ratan’s performance is the latest in a series of drops and bounces for the company. One of the few women to manage her own hedge funds, Chopra was viewed by investors as a rising star when she started Ratan in 2009. It was a difficult time to launch due to industry losses during the financial crisis, but she got the backing from major investors. including Tiger Management founder Julian Robertson. Strong initial results helped grow Ratan’s assets to approximately $ 1 billion in 2015. Despite ups and downs, its long-term performance has been strong, with an average return of 16% over 10 years and an average return of the 35% annually for the last three years. . However, Ratan teamed up with prominent hedge fund managers, including Pershing Square Capital Management’s William Ackman, to invest in the pharmaceutical company Valeant, which turned out to be a disastrous gamble. Now called Bausch Health Companies (NYSE 🙂 Inc, the investment seriously hurt Ratan’s performance in 2015. Then, in December 2017, Chopra settled with the US Securities and Exchange Commission over the alleged exchange. Inappropriate reporting with her husband, Paritosh Gupta, who worked at a different background. Soon after, Robertson and other investors left. Ratan now has $ 350 million in assets under management. It remains to be seen if last year’s astonishing performance translates into fresh cash. Since the financial crisis, investors have become increasingly nervous, often preferring big-name funds with smaller but more stable returns. In her letter, Chopra thanked the investors who stood by her over time and warned that this year will likely be “bumpy.”
Disclaimer: Fusion Media wishes to remind you that the data contained on this website is not necessarily accurate or in real time. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so the prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur as a result of the use of this data. Fusion Media or anyone involved with Fusion Media will not accept any responsibility for loss or damage as a result of reliance on information, including data, quotes, charts, and buy / sell signals contained on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.