Macro specialist LHG Capital surpasses $1bn in AUM
Macro hedge fund LHG Capital Management (LHG) has surpassed $1 billion in assets under management (AUM), consolidating its position as one of the largest pure-play global macro hedge funds in the Asia-Pacific region.
Due to strong demand, in January, the firm’s management team has also announced plans to hike the performance fee of its USD-denominated China macro fund from 20% to 25%.
The hedge fund firm’s China Macro strategy, a niche CTA strategy focused on investing in Chinese futures markets, previously had a hard cap of $200 million across its two commingled funds (offshore USD and onshore CNY). In early January, LHG’s investment committee decided to increase the cap to $350 million. Within two weeks, pent-up investor demands and previous oversubscriptions filled up the $150 million gap, pushing the firm’s total AUM to over $1 billion.
Currently, the strategy is once again oversubscribed and closed to outside investors.
Launched in February 2021, LH China Opportunities Fund, the strategy’s USD-denominated fund, delivered a record-breaking 64.7% return before fees in 2022, with a maximum drawdown of -9.89%.
Due to strong investor demands, in January, LHG’s management team increased the minimum investment amount of its offshore China fund from $5 million to $12 million, effective immediately. Meanwhile, the fund’s performance fee will be hiked from 20% to 25% starting February 1. The 2% management fee arrangement remains unchanged.
Unlike most of its “billion-dollar club” peers, LHG is one of the very few hedge funds that have successfully grown assets without institutional or fund of hedge fund money. Instead, the firm raised the majority of its assets from family offices, ultra-high-net-worth individuals, and private companies.
LHG runs two macro strategies, Diversified Global Macro and China Macro, and invests in a broad range of highly liquid financial instruments across asset classes, currencies, and geographies.