that funds performance is abysmal. but comparing it to a long only fund is not the right benchmark, Long/Short or Market Neutral would be more apt, making the relevant returns less egregious (as they've had a tough run as well).

As of 9/30 the fund had a gross exposure of 149% and was 32% net long [1], so he's employing leverage as well.

[1]http://www.morningstar.com/funds/XNAS/HSGFX/quote.html

Edit: looks like some of that leverage is on the form of options so maybe the actual math is different.