Maniyar’s ‘man and machine’ macro strategy spins out of Tudor with assets of over USD1 billion

Man and machine

A major new standalone operation in the quant-driven, discretionary global macro space has gone live with the spin-out this month of Maniyar Capital Advisors (MCA) from Tudor Investment Corporation.

MCA, which started trading on 1 May with assets in excess of USD1 billion, will utilise the same strategy and structure that was previously run for several years within Tudor – and which is believed to have delivered strong returns for investors through a variety of market environments. 

Founder, CEO and CIO Dharmesh Maniyar was a senior portfolio manager and partner at Tudor from 2013, having previously spent five years as a portfolio manager at Brevan Howard Asset Management.

Prior to joining Brevan Howard, Maniyar – who has a PhD in Applied Mathematics (Machine Leaning) – worked as a post-doctoral research associate on the Managing Uncertainty in Complex Models project at Aston University in the UK. 

His strategy involves a “man and machine” approach to discretionary macro trading, with the investment team making extensive use of quantitative and computational techniques in reaching discretionary macro decisions. 

The strategy invests across all asset classes with a historical emphasis on FX, fixed income, equity indices and commodities – and with a geographic focus on the G-10 plus major emerging markets. 

MCA’s pedigree and performance are likely to prove attractive to allocators at a time when capacity is scarce for macro strategies that incorporate sophisticated data science capabilities to profit from probability differences across various markets. 

Given the current market turmoil, investor demand is growing fast for macro managers that have a track record of delivering uncorrelated returns in different market regimes.

It is understood that the strategy delivered gains of around 7.5 per cent in the first quarter of this year as the eruption in market volatility across all asset classes created an array of macro trading opportunities.

Maniyar and his colleagues were able to capitalise on the dislocation in volatility markets, the distortion in fixed income spread markets and the emergence of various new macro themes due to the economic impact of Covid-19 and the massive monetary and fiscal policy response across G-10 and developing economies.

The MCA team uses advanced quantitative techniques throughout the investment management process to source and structure trades, create the portfolio, monitor positions and harvest profits.

But it is fundamentally a discretionary macro strategy, with Maniyar himself making the final investment decisions. The fund targets superior risk-adjusted returns that feature little or no correlation to traditional asset classes, and historically it has performed well in times of market dislocation.

MCA’s 20-strong team includes several seasoned hedge fund professionals on both the investment and business management sides of the firm.

Chief risk officer Patrick Trew previously spent 16 years as chief risk officer and partner at Sir Michael Hintze’s CQS multi-strategy hedge fund group – having previously worked in senior risk management roles at Lehman Brothers and Credit Suisse First Boston.

Senior portfolio manager Dev Sahai, who has worked with Maniyar at Tudor for the past five years, also had previous roles as a portfolio management trader at both MKP Capital and Brevan Howard.

Brad Williams, who is responsible for product development and investor relations, was formerly managing director of product development at Tudor from 2007 – prior to which he spent 13 years at Goldman Sachs Asset Management.

COO Mark Konda was a founding partner and the COO/CFO of Bennelong Asset Management for 15 years. Before that he spent 16 years at Macquarie Bank.