A pair of former Nomura Holdings traders is planning a US$500 million discretionary global macro hedge fund for launch later this year.
LindenGrove Capital expects to raise half of its US$1 billion capacity in its first year. But it won't wait for a certain asset level before debuting; the London-based firm will launch as soon as it wins a Financial Services Authority license.
Nomura veteran Borut Miklavcic and Gianluca Squassi are behind the new London-based firm and will seed its first offering. Miklavcic, who was head of liquid markets proprietary trading in London at the Japanese bank, will serve a LindenGrove's chief investment officer, and Squassi, a former portfolio manager at Nomura, as its CEO and chief risk officer.
Nomura has not invested in LindenGrove.
The new firm will invest in inflation products, interest rates, credit and foreign exchange.
"We think that inflation markets present an interesting risk-reward given the current backdrop of unconventional monetary policies by major central banks and the global debt overhang," Miklavcic told Bloomberg News. "After the recent risk rallies, we also observe that long-term tail-risk hedges are attractively priced across a number of asset classes."
"The two strategies where we differentiate ourselves most from peers are inflation and macro credit," he continued. "We trade both directional and relative-value strategies."
Miklavcic and Squassi, a partner at hedge fund Semper Macro from 2005 through 2007, have brought along five former colleagues from Nomura to LindenGrove: Florian Gaier, Tom Groves, John Pereira, Ravin Seeneevassen and Jack Zhou.