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Ex-Commonwealth PM Set to Launch $500M Macro Fund LAUNCH

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Ex-Commonwealth PM Set to Launch $500M Macro Fund LAUNCH The long and the short of it www.hfmweek.com ISSUE 497 3 MAY 2018 INFRAHEDGE CEO BRUCE KEITH DEPARTS AFTER 7 YEARS HFM EUROPEAN 2018 $30bn MAP co-founder to be replaced by Andrew Allright PEOPLE MOVES 03 PERFORMANCE AWARDS DEUTSCHE PUTS PRIME FINANCE BUSINESS UNDER REVIEW HF head Tarun Nagpal to leave bank after 15 years PRIME BROKERAGE 07 EX-GRUSS CAPITAL PROS PREP EVENT-DRIVEN FUND HFMWEEK REVEALS ALL Indar Capital expected to launch later this year LAUNCHES 10 THE WINNERS AWARDS 23 Ex-CommonWealth PM set to launch $500m macro fund Christopher Wheeler readies between 2013 and 2016. London-based CJW Capital CommonWealth closed BY SAM MACDONALD down last year as Fisher depart- ed to join $26bn Soros Fund FORMER CITADEL AND Management. CommonWealth Opportunity From November 2016 until Capital portfolio manager Chris- March this year, Wheeler is topher Wheeler is set to launch a understood to have traded a sub- LAUNCH macro fund with at least $500m stantial macro sleeve for Citadel. initial investment, HFMWeek He previously spent five years has learned. with London-based liquid multi- ANALYSIS Wheeler is starting London- asset business Talisman Global NUMBERS SURGE IN 2017 based CJW Capital Management Asset Management. He earlier with backing from a large asset worked at Morgan Stanley. manager and is looking to begin CJW Capital could become trading this year, HFMWeek one of this year’s largest HFM Global’s annual survey shows understands. European start-ups, amid a num- He registered the firm with ber of prominent macro hedge equity strategies remained most in UK Companies House on 23 fund launches. demand while credit/fi xed income March. The venture is awaiting Ex-GLG and Moore Capital FCA approval. star trader Greg Coffey is due saw rally Wheeler worked for to launch emerging markets- CommonWealth, the $2.2bn focused Kirkoswald ANALYSIS 16 macro fund led by Adam Fisher, Capital with more than 03 COMMENT THE BIG DD QUESTIONS WHEN INVESTING IN CRYPTO FUNDS 14 End-to-end cybersecurity to keep you safe and focused on what matters: your business. Growing threats and regulatory demands are changing the global hedge fund community. Are you prepared for the future? Align’s team of award-winning experts bring over three decades of experience and a full suite of cybersecurity services to provide end-to-end protection and çVfZcW]W^då_bè_ebTecZ^Wcc`bçUdZUW"5æZX^7èTWbcWUebZdèZcdYWÄbcd_åZdc\Z^V. a complete service offering that converges everything you need to stay safe, all in one turnkey solution. Align Cybersecurity’s services include: • Vulnerability Assessments • A Dedicated Client Portal • A Customized Cybersecurity Program • Outsourced Virtual Chief Information • 24x7x365 Threat Monitoring and FWUebZdèBåÄUWbf7<FBFWbfZUWc Response • Employee Cybersecurity Education Protect yourself before disaster strikes. Schedule a free cybersecurity assessment today. 800-877-9980 (US & Canada) www.align.com www.aligncybersecurity.com NEWS If you have a news story for HFMWeek, please email: [email protected] PEOPLE MOVES nearly eight years. State Street and InfraHedge CONTINUED InfraHedge CEO Keith formed a strategic alliance in July FROM PAGE 1 2011, which saw the admin giant departs after 7 years acquire a majority equity stake in $2bn in capital from investors, includ- Co-founder of $30bn MAP to be replaced by Andrew Allright the London-based firm. ing personal backing from Moore InfraHedge first took the top founder Louis Bacon. BRUCE KEITH, the CEO product development and oper- spot in HFM’s managed account Bacon is also backing ex-Moore sen- of managed accounts platform ating model, according to his survey in 2015, with Lyxor forced ior portfolio manager Hassim Dhoda’s (MAP) InfraHedge, has left after LinkedIn profile. to relinquish its position on Soloda Investment Advisors, which is seven years, HFMWeek has learned. “[Allright] has played a key account of a 37.5% asset drop over set to open this year with $1bn. Keith departed from the $30.2bn role in InfraHedge’s growth to the 12 months between March Last month, HFMWeek revealed platform, the hedge fund industry’s become the world’s largest man- 2014 and March 2015. ex-Graham Capital PM Grace Gu largest as of December 2017, at the aged account platform, and is well The MAP space has been was launching Dracaena Capital beginning of the month, according placed to step in at a time when growing, with managed accounts Management, with around $200m. to FCA filings, having co-founded the managed accounts space is see- attracting 25% of all inflows over Latest HFM Global research into the now State Street-owned enti- ing substantial near and long-term the last 18 months, according to hedge fund launch activity shows mac- ty in January 2011 with Akshaya opportunities,” the statement said. research by Credit Suisse published ro funds made up four of the top five Bhargava. “He will lead an experienced earlier this year. largest launches across the US, Europe During Keith’s tenure, and talented team comprising oth- Assets on the managed account and Asia regions in 2017, includ- InfraHedge assets have quadru- er ‘day one’ employees like COO platforms tracked by HFM ing Ben Melkman’s $1.5bn Light Sky pled, growing every year since Ravi Raman, as well as more recent increased by 23.3% last year, the Macro and $750m BTG Pactual spin- 2012, when the platform oversaw additions to the team including strongest year of growth since our out Amia Capital. $7.6bn. He will be replaced in North America president Robert research began in 2012. CJW Capital’s launch comes as the interim by Andrew Allright, Vanderpool and European business Total assets crossed the $100bn investors are pouring money into mac- according to a statement provided development head Lizzy Buss.” threshold in June 2017 and fin- ro strategies, which took in nearly $9bn to HFMWeek. Earlier this year, State Street ished the year at $112.8bn, up from in Q1, according to eVestment data. Allright, a former Man Group hired Vanderpool to lead the plat- $91.5bn in January. Wheeler was unavailable for com- ops and risk pro, has worked for form’s North America business. He Keith, whose next role is not yet ment. InfraHedge since inception, most previously worked for Northern known, declined to comment. [email protected] recently leading the platform’s Trust Wealth Management for [email protected] IN THIS fter talk not so long ago of an The number of mega fund launches industry in crisis, amid more may be lower than years gone by, but ISSUE than $100bn in outflows in macro launches were one area that saw A 2016, the hedge fund industry some well pedigreed, highly capitalised FUND MANAGER INDEX has been steadily on the road to recov- day-one launches last year. Apollo Global Management 11 ery. Macro funds made up four of the A 15-month consecutive run of posi- top five funds by region in 2017. These AQR Capital Management 8, 9 tive returns, until February’s market included Ben Melkman’s US-based BFAM Partners 8 sell-off, and the resumption of net asset LightSky Macro, the Brevan Howard inflows across all quarters last year put AH Master Fund, and BTG Pactual Citadel 1, 3, 6 the industry back on a firmer footing. spin-out Amia Capital. CJW Capital Management 1, 3 And while the environment for start- The equity market bull run has made EDITOR’S ups remains undoubtedly tough, HFM it more difficult for hedge funds to dis- CN Capital Management 9 Global’s annual survey of launch activity tinguish themselves on performance, CommonWealth Opp. Capital 1, 3 VIEW reveals a marked improvement in 2017. and puts added pressure on fees, but MATT SMITH The number of hedge fund launches experts remain optimistic about the ExodusPoint Capital Management 5 HEAD OF NEWS rose across all main global regions last launch environment. Glen Point Capital 8 year, with the rise most pronounced Elsewhere, we report on a growing Gruss Capital Management 10 in Europe. The US and Asia also saw trend by hedge fund firms to tighten up an uptick in launch numbers, accord- their policies around personal trading Indar Capital 10 ing to the funds tracked by the HFM by employees, partly driven by greater Lombard Odier Asset Management 8 database. scrutiny from regulators such as the As investors increased their alloca- SEC, as well as the adoption of new Navy Capital 6 tions into new managers, long/short technology such as automated report- Pictet Asset Management 6 equity strategies continued to be the ing systems. Today, most of the largest most favoured, closely followed by firms have restrictive policies in place SEB Investment Management 10 credit/fixed income and multi-strategy for personal trading, although few go as SkyBridge Capital 5 funds. Investors and prime executives far as banning the practice altogether. working in the launch space note an We also feature all the winners and Snow Lake Capital 11 increased interest for sector-focused pictures from the HFM European Per- Tikehau Investment Management 10 strategies, particularly in equities, as a formance Awards. Next up, service theme that is here to stay. providers. Q Twin Capital 6 Whitebox Advisors 8 3-9 MAY 2018 HFMWEEK.COM 3 INDEX PERFORMANCE Apr 2017 – Mar 2018 YTD RETURNS SOURCE: HFM GLOBAL PERFORMANCE DATABASE GLOBAL US EUROPE ASIA EQUITY HEDGE FUNDS Center Lake Capital ($99m) Sosin Partners ($246m) MACRO MANAGED FUTURES EVENT-DRIVEN Center Lake Capital Management CAS Investment Partners LOWS 12 & 10 8 HIGH 34.7% 23.6% 6 HIGHS BENCHMARKS Pantera Bitcoin Fund ($168m) Silver 8 Partners ($135m) 4 Pantera Capital Management Silver 8 Capital Compound Return (%) Return Compound 2 0 -2 MARKET MONITOR AprMay Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar LOW -52.2% -33.1% PAGE INVESTORS FAVOUR CLIENT EVENTS FOR MANAGER INTERACTION Client events are the most popular form of ‘supplementary communication’ with investors, according to the results of HFM Insights’ latest report on client communications.
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