Quincy Lee of Teton Capital Partners

Teton Capital Partners, L.P., an Austin-based hedge fund run by 38-year-old Quincy Lee, has earned a net annualized return of 22.6 percent since its April 1999 inception. The fund’s only down year was 2008, when it lost 23.9 percent. Teton has grown from $1 million in capital to over $200 million, through a combination of internal compounding, word of mouth, and personal recommendations (in 2004 and 2005) from hedge fund managers Jerome Simon of Lonestar Partners and John Kleinheinz of Kleinheinz Capital. Over $45 million of the assets under management belong to Quincy and his family. Quincy’s own investment represents about 75 percent of his net worth.

Teton’s record is not the result of a few winning investments, one outstanding year, or the use of exotic instruments or derivatives. Nor is it the result of portfolio leverage, which Teton has never employed. Instead, Teton owes its record to Quincy’s natural conservatism – the fund has held significant cash for most of its history and maintains an active and profitable short portfolio. Quincy combines this with the ability (when he does choose to deploy capital) to find investments with unusually high rewards relative to risk. These investments have produced consistently superior returns for more than a decade.

Read full profile: https://docsend.com/view/uk2jd2x5aakc5zbt