NewAlpha Asset Management, the Paris-based hedge fund incubation specialist, has made its 20th strategic investment with LindenGrove Capital, a recently launched London-based hedge fund management firm focused on global macro strategies.
LindenGrove was founded by Borut Miklavcic, who had been heading Nomura’s Liquid Markets Proprietary Trading group since 2009. At Nomura, Miklavcic established the business from inception, and built and managed a team of 14 portfolio managers spread over three offices. The team had approximately USD1bn of hedge fund equivalent capital.
Prior to Nomura, Miklavcic led the Lehman Brothers global inflation trading business between 2002 and 2008. He set up the business and developed it into a market leading position in the global inflation market. He started his career in 1997 at JP Morgan in the Emerging Markets Fixed Income group.
At LindenGrove, Miklavcic is joined by several members from his former team at Nomura, including two portfolio managers, Tom Groves and Ravin Seeneevassen, and Gianluca Squassi who is taking the role of CEO/CRO at LindenGrove. Squassi has built a very significant trading experience in proprietary trading at Goldman Sachs (nine years), UFJ International and Semper Macro (four years) before joining Lehman’s proprietary trading unit in 2007 and Nomura Liquid Markets Proprietary Trading group in 2009.
The LindenGrove Capital Master Fund implements a wide array of discretionary global macro strategies within a multi-strategy, multi-manager framework, similar to the model run by Miklavcic while at Nomura. The fund allocates the capital dynamically between separate portfolios employing macro directional, directional relative value and pure relative value strategies on liquid markets and products. A systematic risk management framework is implemented to limit downside risks at both the individual and the fund level.
The LindenGrove Fund has a particular focus on inflation, interest rates, macro credit and FX with developed markets representing the majority of risk allocation by region. Launched on 12 December 2012, the fund targets an absolute performance of 10-15 per cent per annum with eight per cent annual volatility.
“Borut and his team at LindenGrove offer a very exciting investment opportunity for sophisticated investors by bringing a considerable expertise in deploying successfully capital across global macro strategies,” says Antoine Rolland, NewAlpha’s managing partner and CEO. “We strongly believe that, in a zero-percent rate world, investors are looking to diversify their fixed income allocations and will look for those kinds of opportunities”.
Miklavcic says: “NewAlpha’s early stage investment marks a very significant vote of confidence in our ability to capture meaningful opportunities in global financial markets, and meet the highest expectations of hedge fund investors. In this respect, LindenGrove differentiates interestingly from its peers by the considerable amount of investment experience of the team in alpha-rich asset classes such as inflation-linked securities and macro credit instruments. We are very excited by the prospects of building our business with the support of Antoine and his team.”
NewAlpha invested through a closed-end fund dedicated to institutional investors seeking exposure to early stage managers.