Famed short-seller Andrew Left's hedge fund saw 43% returns in its 1st year

Andrew Left's newly launched Citron Capital delivered strong first-year performance in 2019, posting net returns of 43.3% on fees and gross returns of 56.4%, according to an investor letter reported by Reuters on January 6, 2020. The result marks a notable entry into hedge fund management for Left, the prominent activist short-seller and founder of Citron Research, who leveraged two decades of short-selling experience to establish the fund.

Citron Capital operated with a balanced long-short strategy throughout 2019. The fund maintained average long exposure of 75.8% while simultaneously carrying 80.3% short exposure, a portfolio construction that enabled it to generate returns regardless of broader market direction. On the long side, Left held positions in Bausch Health, RH, and Snap—companies he assessed as undervalued or positioned for appreciation. Conversely, his short portfolio included bets against Ligand Pharmaceuticals, Jumia Technologies, and Grand Canyon Education, reflecting his view that these securities faced material downside risk.

A defining feature of Left's 2019 investment thesis centered on his bearish Peloton call. Following the fitness company's December stock selloff triggered by negative reaction to its holiday marketing campaign, Left's Citron Research published a short report assigning Peloton a $5 price target. This valuation implied potential 83% downside from the closing price on January 6, 2020, when the call was disclosed. Left signaled commitment to this position despite market volatility, maintaining the short thesis in his communication with investors.

The 43.3% net return positions Citron Capital favorably within the alternative investment landscape, particularly given its first-year status and the diversified positioning across long and short exposures. The fund's performance underscores Left's ability to translate activist research capabilities into systematic portfolio management at scale.