Caxton To Reopen, Trumpets 'Recent Market Developments'

Aug 1 2013 | 11:35am ET

Caxton Associates will reopen its flagship hedge fund for the first time in years, hoping to raise at least $1 billion.

The $7 billion firm aims to take advantage of what it sees as a surfeit of opportunities, the Financial Times reports.

"Our enthusiasm stems from an identifiable change in the market environment in recent months," Caxton wrote. "The previous regime was characterized on the one hand by 'trendless' volatility in many parts of the capital markets and elsewhere by an incessant hunt for yield, both spurred on by repeated rounds of monetary easing and near-zero official interest rates."

"We believe that recent market developments are foreshadowing many opportunities in liquid markets over the coming months and years."

Caxton's global macro fund is up 17% this year after two disappointing years. According to the FT, the firm plans to add up to $1 billion in assets initially, and could remain open beyond that if enough opportunities remain, according to the FT.

Caxton is the first major macro fund to reopen to new investment in years. During a difficult 2011 and 2012, many such funds actually returned capital to investors, citing a dearth of opportunities.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of