Wednesday, 29 March 2017
Last updated 59 min ago
Mar 16 2017 | 9:41pm ET
Jeffrey Talpins’ Element Capital Management has reportedly raised $2 billion in capital in the last two weeks as investors return their attention to macro funds that use global equity, bond, currency and commodity markets to bet on broad economic trends.
With the fresh capital, AUM at Element has risen to $12 billion, according to a Bloomberg article citing an unidentified individual familiar with the developments. The company closed its macro fund to new money last April but re-opened it at the start of the month. It turned away interest after reaching its target earlier this week, largely through commitments from existing investors.
Element returned 19.4% last year and nearly 23% in 2015, according to Bloomberg data, putting it among the best-performing macro funds over a two-year period that saw many similar vehicles struggle with low interest rates and high asset correlations around the world. Since inception, the fund has booked an annualized return of 21%, the article added.
Macro’s resurgence is tied to the shift to tighter U.S. monetary policy, rising inflation, geopolitical uncertainty and higher volatility. Data provider eVestment estimated last month that after nearly $10 billion in redemptions in 2016, macro hedge funds received $1.1 billion in new capital during January.
Talpins, a former Goldman Sachs and Citigroup trader, founded Element Capital Management in 2005. The firm uses primarily fixed income, currency and equity instruments to speculate on global macro developments.