RWC launches global macro hedge fund
London boutique manager RWC Partners is to launch an onshore global macro hedge fund for recent recruits Peter Allwright and Stuart Frost.
They will replicate the strategy they employed while managing the Macro Trading Crescendo hedge fund at Threadneedle from October 2008 to June 2010.
Despite launching the vehicle during the worst year on record for hedge funds, the duo made about 15% by June 2010.
Although the last quarter of 2008 was a dire one for hedge funds, but a good one for the global macro strategy, by mid-2010 the industry and its sub-strategy came out fairly level, with global macro making 6.8% against the overall industry’s 8.5%.
Dan Mannix, RWC’s head of business development, said: “Macro remains one of the most enduring hedge fund strategies mainly due to its ability to generate returns through the cycle.
“Peter and Stuart spent many years trading and analysing macro markets within investment banks before moving to manage hedge funds. Their experience and approach have allowed them to navigate the financial crisis whilst making money and avoiding significant drawdowns.”
They will invest in liquid markets, mostly in rates and currencies instruments, but also in equity indices and commodities.
The duo recently took over RWC’s Cautious Absolute Rate and Currency fund, a low volatility Ucits III compliant vehicle. Assets in the fund have increased by 33% to $80m since the start of this month.
RWC has been a hive of activity this year.
It announced RWC Europe Absolute Alpha, an onshore European long/short fund for flagship manager Ajay Gambhir; it hired Nick Purves and Ian Lance from Schroders and readied income funds for them; and it has hired and busied Allwright and Frost.
Separately, Schroders acquired a minority stake in the firm.