Thursday, 30 March 2017
Last updated 4 hours ago
Mar 20 2017 | 9:24pm ET
Macro hedge fund manager Stone Milliner has reportedly suffered its worst start to a new year since inception, with its $6.1 billion flagship fund losing 2.1% in the first two months of 2017.
The performance was reported in a Reuters article on Monday, citing an investor letter, and was attributed to a short position in fixed income. In comparison, the average macro hedge fund gained 0.4% over the same period, according to industry data provider Hedge Fund Research.
The chief drag on performance was an unspecified short position in fixed income, the article continued.
Stone Milliner’s returned 4.9% and 5.7% in 2016 and 2015, respectively, significantly outperforming its sector benchmarks at a time when many macro funds were under intense pressure.
In the investor letter, founders Jens-Peter Stein and Kornelius Klobucar reportedly said the fund had shifted to a “modest” short position against the U.S. dollar and trimmed its short position against the euro.
Macro hedge funds bet on broad economic trends through positions in equity, fixed income, currency and commodity markets.
Stone Milliner was founded in 2012 by Stein and Klobucar, who were former traders at Moore Capital and were seeded by their former firm. Based in London with offices in Zug, Switzerland, the comp any manages directional global macro strategies across all asset classes with focus on liquidity.