Hathersage Capital Management - Best Macro Hedge Fund
Hathersage Capital Management LLC is a discretionary global macro investment manager founded in 1991. The firm is a foreign exchange specialist, expressing its global macro views strictly in G10 currencies, using interbank spot, forwards and vanilla options.
Hedgeweek’s readership voted Hathersage Capital Management’s Citi Access G10 Macro Access Strategy the Best Macro Hedge Fund at the 2018 Hedgeweek USA Awards.
The portfolio management team at Hathersage has been managing substantial G10 FX portfolios for more than three decades. At a time when systematic trading and alt-beta exposure has grown dramatically, Hathersage is an experienced discretionary manager who understands how to utilise optionality and its knowledge of market nuance in adding meaningful diversification to a portfolio.
The Hathersage team uses traditional fundamental macroeconomic analysis to generate high probability trade ideas and create asymmetric directional exposures in its G10 Macro Access Strategy. Portfolios always maintain net long convexity, which limits the downside in moderate adverse price moves while enabling positive performance during periods of extreme market dislocations. The strategy has an annualised return of 15.53 per cent since its 2011 inception on the Citi Macro Access Platform, making it the top absolute return performer among all participating managers over that time frame.
With the post-war global order coming under increasing attack, markets are showing signs of concern about credit spreads and equity valuations. At the same time, a near decade of ultra-low interest rates has increased correlations across all asset classes. As such, savvy investors are focused on the importance of non-correlated, satellite diversification around a core investment portfolio.
Hathersage’s flagship discretionary, macro-based strategy offers historically low average correlation when global equities are rising. But when global equities fall one standard deviation or more, that correlation becomes highly negative, helping to cushion the impact of a mark-down in an equity beta-centric portfolio when it is needed the most.
This strategy is now directly accessible through the Cayman-domiciled Hathersage G10 Macro Access Fund. The fund employs the same award-winning strategy that was previously only available via the Citi Macro Access Platform. The fund offers a highly competitive fee structure (the higher of the management fee or incentive fee with a high water mark) with no long-term lock-ups.
On winning this year’s Hedgeweek award, Bill Lipschutz (pictured), Hathersage founder and Chief Investment Officer said: “Being recognised by Hedgeweek readers, many of whom are our investors, is a continuing honour for our team. Once again, we commend Hedgeweek on their commitment in acknowledging the achievements of the many talented investment managers and service providers in our industry.” n