LHG Capital Management, a $1 billion-plus hedge fund specialising in ‘quantamental’ global macro investing, has closed its first ever single-investor fund at $150 million, boosting the firm’s assets under management to over $1.3 billion.
Unlike its separately managed account (SMA) products, which trade on a pari passu basis with its flagship fund, the hedge fund firm’s ‘Fund of One’ product combines its two macro strategies, Diversified Global Macro and China Macro, into a single integrated fund, with customised ESG integration, geographical focus, currency exposure management, return/risk profile, and lock-up period.
The new fund will be jointly managed by LHG’s co-CIOs, Laurence Yang and Jeff Xu.
LHG Capital is one of the latest hedge funds to launch single-investor funds, following in the footsteps of its larger peers such as Bridgewater Associates and Brevan Howard. In the post-Madoff era, single-investor funds are becoming increasingly popular with institutional investors and large family offices, as they offer investors more control, transparency and flexibility compared to traditional commingled funds.
Due to the operational scale and infrastructure costs, single-investor fund AUM thresholds typically start at $100 million.