Rudegair reports: “Hunterbrook Capital gained 23% after fees last year through September, according to an investor letter viewed by The Wall Street Journal. That was higher than indexes that track hedge fund performance, as well as the S&P 500’s roughly 15% return over the same period. Many of the best-performing positions were bullish bets on stocks based on reporting from its sister newsroom, Hunterbrook Media.
“Take flying taxi manufacturer Joby Aviation. The hedge fund had previously bet against similar companies that it believed were overhyped and possibly fraudulent. Then a Hunterbrook Media reporter discovered that an abnormally long Joby flight appeared and then disappeared in public flight logs.
“He booked a room overlooking the hangar and photographed a new plane that Joby was testing. Hunterbrook Capital bought Joby shares before the scoop was published, thinking Joby bears would have to cover their shorts, and sold them a few weeks later after a rally. An unrelated announcement from Joby about expanding production capacity also helped push the shares higher.”
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