The hedge fund pay structure has endured withering criticism of late, but it’s so baked into the culture of the industry that it will take more than a few years of so-so performance to change it.
Following the recent retirement of its legendary founder, Bruce Kovner, Caxton Associates is embarking on a new era under Andrew Law, his handpicked successor.
The week following the downgrading of U.S. debt by Standard & Poor’s was a turbulent one for the markets. But some hedge fund managers succeeded in navigating the chaos, and a few even finished that week in the black.
Citadel’s Ken Griffin moved a step closer to returning to his high water mark after an impressive 2.5 percent gain in July. His Wellington and Kensington funds are now up about 14 percent for the year when many of the macro stars are still in the red.
Macro investors such as Bruce Kovner’s Caxton Global Investment and Louis Bacon’s Remington Investment Strategies are struggling to make money this year – thanks to the lack of a discernible trend in most of the global markets and the sharp unpredictable twists and turns in individual markets.
