London-based BlackSquare Capital has launched a fund of funds comprised solely of investments offered by highflying powerhouse Caxton Associates. The BlackSquare Capital Access Fund allocates to three Caxton offerings, including two that are closed to new money. Run by hedge fund veteran Christopher Peel, the newly-minted firm obtained capacity in Bruce Kovner’s famed global macro fund, which has been closed since 1997. It also got some space in the firm’s long/short fund, which has been closed for about three years. The target size of the new fund is unknown as Peel declined to comment.
The fund of funds also offers investors a chance to invest with Caxton in significantly smaller chunks than if they showed up on Kovner’s doorstep. It has a minimum investment of $100,000, according to an investor document. The fund also has quarterly liquidity with a 35 day notice period and a 10% gate provision.
BlackSquare will rebalance the allocation on a monthly basis. It currently allocates 36% to the global macro fund and 48% to the long/short equity offering. The third fund in the mix, which has a 16% allocation, is Caxton’s long-only fund that it kicked off last year. That fund is not closed.
Peel was most recently at Cardinal Asset Management, where he was co-heading the firm’s fund of funds business (AIN, 9/6/04). He left Cardinal when the firm decided to drop funds of funds and started BlackSquare with a partner earlier this year.