Moore Capital Management, LLC (MCM) is an employee owned hedge fund sponsor. The firm provides its services to institutions and high net worth individuals. It invests in the public equity and fixed income markets across the globe. The firm employs a global macro-style approach to investing. Moore Capital Management was founded in 1986 and is based in New York, New York.
Moore Capital Management, ran by Louis Bacon. Moore, named after Bacon’s middle name, is a $10 billion global macro set of hedge funds. The next few funds we will be covering are global macro oriented funds, which is a switch from some of the more value oriented funds we’ve been covering, like the ‘Tiger Cub’ funds including Stephen Mandel’s Lone Pine Capital, Lee Ainslie’s Maverick Capital, John Griffin’s Blue Ridge Capital , and Andreas Halvorsen’s Viking Global. Global macro funds seek to find investments in whatever market they can gain an edge, whether it be equities, bonds, currencies, debt, commodities, and more. So, keep in mind that these equity positions only represent a portion of the fund’s overall holdings. They are not required to disclose holdings outside of equities, notes, and stock options.
Louis Bacon is a famed trader and risk manager. He comes from the group of “offspring” of the legendary Commodities Corp. Bacon emerged as one of the great macro traders alongside the likes of Paul Tudor Jones (Tudor Investment Corp), and Bruce Kovner (Caxton Associates). And, interestingly enough, Bacon helped get his firm off the ground when Paul Tudor Jones stopped accepting capital from investors and instead turned them to Bacon’s firm. Returning 31% annually since inception in 1990, Bacon can be very proud of his flagship fund, Moore Global Investments, but, it doesn’t stop there, as his returns have shown little correlation to the stock market and low volatility. He is the definition of a risk manager.
Bacon credits his risk management skills to the futures markets, where he learned to be sensitive to market action. And, he learned such skills at an early age. While getting his MBA at Columbia, he used his student loan money to trade. And, he lost it all. Clearly, he learned a lesson he would never forget. Such a lesson stuck with him as he worked various jobs in the financial industry before eventually starting his own firm. And, in his first year managing Moore Capital Management, he returned 86%. Bacon strives to identify long running macro trends. While he has a longer-term macroeconomic view, he won’t let that stop him from making money by trading around the position in the mean time.