Ex-Brevan Howard PM Melkman Backed By Steven Cohen in New Macro Fund Launch

Feb 10 2017 | 11:06pm ET

Former Brevan Howard partner Ben Melkman is launching his new hedge fund next month with backing from billionaire investor Steven Cohen. 

Cohen, whose famed SAC Capital rebranded into Point72 Asset Management following a 2013 settlement with the U.S. SEC, is backing Melkman’s Light Sky Macro with an anchor investment, according to a Bloomberg article citing unidentified individuals with knowledge of the matter. 

Melkman launched New York-based Light Sky in June 2016 following a successful stint managing Brevan Howard’s $500 million Argentina fund. The new firm announced a spate of hires late last year, including veteran risk executive Barry Schacter, former BofA global economics head Alberto Ades, and former Realm Partners CFO Doug Spiegel. The new fund plans to launch by the end of the first quarter with around $400 million in AUM, Bloomberg said. 

Macro funds, which bet on broad trends in the global economy through equity, bond, currency, and commodity positions, have generally struggled for much of the past few years as rising stock valuations, rock bottom interest rates and high asset correlations made it exceedingly difficult for many managers to generate consistent returns.

Some industry observers, however, believe a combination of factors going forward, including a stronger U.S. dollar, greater market volatility, rising interest rates and improved support from President Trump’s tax, infrastructure and regulatory policies, will improve prospects for the alternative investment segment. 

Light Sky Macro will reportedly cap assets at $1 billion in its first year and will take concentrated, strategic positions, Bloomberg added. 

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