Whale Rock Rebounds From First-Quarter Loss as Stocks Rally (1)

Whale Rock Capital Management’s flagship fund gained 14% in the first nine months of the year, recovering from a steep first-quarter loss and beating many of its stock-picking rivals.

The main hedge fund sank 20% in the first three months of the year, but made almost all of that money back in the second quarter and advanced in the third. The fund wagers on stocks and private companies.

Its long-only vehicle — which bets only on publicly traded firms — soared 36%, according to a person familiar with the matter.

Hedge funds have posted strong gains this year, buoyed ...