Appaloosa Alum’s Special Situations Fund Nets 27% in Fourth Year

CastleKnight Management, a credit and equity hedge fund founded by Appaloosa Management alum Aaron Weitman, gained a net 27% in its master vehicle, according to people with knowledge of the returns.

The roughly $1.75 billion fund profited from healthcare and technology bets — especially businesses benefiting from the boom in artificial intelligence — said the people, who asked not to be named discussing the private results. It’s up 205% net of fees since launching in October 2020, they added.

Top contributors in 2024 included investments in Rackspace Technology Inc., Radiology Partners Inc. and Vertiv Holdings Co., the people ...