Vinik Returns 93.8% in 11 Months of Fund

Jeffrey Vinik, the former manager of Fidelity Investments’ flagship Magellan Fund, posted 93.8% returns after fees in the first 11 months he’s managed money on his own, said a person familiar with Vinik’s performance. Vinik Asset Management, which he started in Boston on Nov. 1, 1996, invests in U.S. stocks on behalf of institutions and wealthy individuals who commit a minimum of $2 million to his hedge fund. The returns through Sept. 30, about three times those of the Standard & Poor’s 500-stock index, generated $195.5 million in net fees for Vinik’s 14-member firm, made up mostly of former Fidelity managers. Vinik charges investors a 1% management fee and takes 20% of the profit. For the nine months ended Sept. 30, his $1.5-billion fund returned 73.4% after fees, trouncing the performance of other large hedge fund managers. Vinik declined to comment.