New Hedge Fund Firms Say They Can Profit in Tough Markets
Prominent global macro hedge funds are struggling. Several upstart firms believe they have found a way to turn challenging circumstances into an opportunity.
By Imogen Rose-Smith
MACRO HEDGE FUND MANAGERS KNOW THE MARKETS can be a cruel mistress. Just ask Louis Bacon. This past summer Bacon, a top macro investor and founder of New Yorkbased hedge fund firm Moore Capital Management, announced that he was returning $2 billion 25 percent of Moores capital to clients. He also said he was moving money out of macro, a strategy that seeks to exploit big-picture economic trends and global capital market events, because he wasnt comfortable taking much risk in the current environment. Nowadays, central banks and policymakers drive the markets and fundamentals play a diminished role.
Bacon has called his 2012 results disappointing. As of mid-November his flagship, $4.6 billion Moore Global Investment Fund, had returned just 3.72 percent on the year. But thats....