NewAlpha Asset Management (NewAlpha), a Paris-based global fund incubation and acceleration specialist, has made a strategic investment with discretionary global macro manager Montrock48 Capital (Montrock48).
Launched in July 2016, New York based Montrock48 is an alternative asset manager that invests in discretionary global macro themes using a sophisticated approach that combines deep fundamental economic analysis and sophisticated derivative-based trade structuring.
The firm was founded by Richard Herman and Louis Jaffe, who worked together at Deutsche Bank and Bankers Trust for a combined 48 years, eventually leading the global fixed income franchise. Each have invested a meaningful portion of their net worth in the fund.
Montrock48 takes a differentiated and fresh approach to macro investing, the portfolio management team expresses these themes using highly quantitative and structured derivative products that Montrock48 feels optimise investment opportunities. Put simply, the portfolio management team use their knowledge of global markets in order to find the most positively asymmetric return profiles possible, using highly sophisticated quantitative models. This modern approach produces a liquid and risk-efficient portfolio, largely uncorrelated to traditional asset classes. Risk management is core to the investment process and critical to how capital is allocated across the portfolio. Montrock48 has developed a thorough risk management process designed to highlight and mitigate long and short term potential losses to the portfolio.
Prior to co-founding Montrock48, Herman, CEO and CIO, ran Deutsche Bank’s Global Fixed Income, Currencies, and Commodities division. During his tenure Rich was CEO of Deutsche Securities (DB’s North American entity) from 2014 to 2015 and a member of DB’s Global Investment Bank Management Committee from 2008 to 2015.
Prior to co-founding Montrock48, Jaffe, President, ran Deutsche Bank’s Institutional Client Group Debt Americas, a role he held for seven years. Lou had an active dialogue with some of the world’s largest investors about their investment strategies and portfolios, bringing to bear the full resources of DB’s preeminent fixed income franchise to assist these clients in navigating the markets.
Herman says: “We are very pleased by NewAlpha’s decision to partner with Montrock48. They were quick to grasp the key components of our strategy, which combines traditional fundamental economic analysis with modern sophisticated trade structuring often using option-based trading structures. With global central banks removing monetary accommodation and market volatility rising, both firms are excited about the opportunity set for global discretionary macro going forward and expect a robust investment environment.”
Lou Jaffe, President, adds, “We are excited to partner with NewAlpha, one of the top European hedge fund seeding and acceleration firms. Their breadth of relationships in Europe and around the globe will provide a great complement to our current capabilities and broaden the strategic distribution for our investment product.”
Antoine Rolland, CEO of NewAlpha, states: “Montrock48’s investment team offers a very exciting investment opportunity for sophisticated investors by bringing a considerable expertise in deploying successfully capital across global macro strategies.”
“As Europe’s leading incubator, NewAlpha is continuously seeking talented investment managers that are in their early stage of development or are looking for strategic partnerships to accelerate their growth.”
