U.K-based BlackSquare Capital launched the BlackSquare Capital Global Macro Fund of Funds on Jan. 1 with some US$30 million in assets.
The Global Macro Fund, a concentrated multi-manager portfolio, launched with 11 discretionary and systematic macro hedge fund managers, many of whom are closed to new investment. The portfolio includes managers such as Caxton Associates, Moore Capital Management, Fortress Investment Group’s Drawbridge Commodities Fund and Winton Capital Management, and will be equally split between equities, commodities, interest rates and foreign exchange. Eventually, the portfolio will contain between 15 to 20 managers.
“I’ve spent the majority of my career at Salmon Brothers on the fixed-income sales desk covering the macro hedge funds throughout the 1990s,” said Christopher Peel, CEO of BlackSquare. ”I view the current environment, given the level of uncertainty in interest rates and revaluation of equity/debt markets, as a very good environment for top-down thematic macro investing, more so now than any time over the last 10 years.”
The Global Macro Fund of Funds charges a 1% management fee and a 10% incentive fee with a US$100,000 minimum investment requirement.
Next quarter, the firm is also looking to launch a long/short commodities fund of funds. “What we want to do is create a product that will complement investors currently invested in long-only products so we want to have a discretionary but fundamental fund that will trade across global commodity markets,” said Peel.
The firm currently manages US $300 million in its flagship Access Fund, which began trading in March 2006. The fund is a concentrated portfolio of holdings in seperate alternative products managed by Caxton or former traders of Caxton.