Citigroup, JPMorgan Vets Launch Macro Fund

Jul 21 2009 | 7:05am ET

New York-based TKNG Capital Partners has launched a global macro hedge fund and is on the fundraising trail for its maiden offering.

The TKNG Global Investment Fund is the brainchild of partners Neil Grossman, formerly of JPMorgan Chase and Five Mile Capital Partners, and Ken Tremain, formerly of Citigroup. The firm kicked off its marketing efforts last month after launching the fund in March. Global Investment is up 8.25% as of last Friday, according to a source familiar with the offering, and manages some $5 million in total assets.

The fund invests primarily in the currency and interest rate markets, as well as equity indices and commodities. Tremain formerly served as Citi’s head of North American interest-rate trading and fixed-income derivatives trading, while Grossman served as a senior trader at Five Mile, a $2.8 billion alternative investment shop specializing in real estate, debt products, structured finance, asset-based lending and financial services.

The fund is just one of many new macro funds trying to find their way into investors’ portfolios given the recent struggles of commodity trading advisers, last year’s darlings of the hedge fund space.

“This is a great environment for global macro funds and I think more people are looking at it,” said the source. “Commodity trading advisers have been great but you could almost argue that the major trends were in place last year and CTAs are struggling now so investors are looking more for discretionary macro managers.”

The fund charges a 1.5% management fee and a 12.5% performance fee for returns up to 15% and 25% for returns over 15%. The minimum investment requirement is $250,000.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

Business Insider has been reporting on the unusual trading activity of a mystery trader who placed a profitable short equity bet to the tune of $21 million on the Aug. 10 move in the CBOE Volatility Index (VIX).