Caxton Associates has suffered significant losses in recent trading as markets reeled from heightened geopolitical tensions in the Middle East, according to a report in the Financial Times, with the firm’s $9bn macro fund declining about 7% last week.
That drop equates to more than $600m in value.
The drawdown leaves Caxton’s flagship strategy roughly 1 per cent in the red for the year, underlining the strain that rapid shifts in energy and fixed‑income markets have placed on macro‑oriented hedge funds. The losses come amid a period of intense volatility triggered by US and Israeli military actions against Iran, which in turn disrupted shipping through the Strait of Hormuz and sent oil prices sharply higher.
Caxton is not alone in feeling the impact. Fellow macro hedge fund Tudor Investment Corporation also saw its portfolio move lower last week, with its macro strategy falling approximately 1.8 per cent over the same period, though it remains in positive territory for the year.
