Macro hedge fund LHG Capital Management has closed its newly structured closed-ended flagship fund, LHG Premium Investments Fund, at €450 million, 50% higher than the original €300 million target.
Macro hedge fund LHG Capital Management (LHG) has closed its newly structured closed-ended flagship fund, LHG Premium Investments Fund, at €450 million ($445 million), 50% higher than the original €300 million target.
LHG Capital Management is one of the largest hedge funds dedicated exclusively to global macro investment strategies in the Asia-Pacific region.
Earlier this year, in a highly unusual move for the hedge fund industry, LHG’s management team decided to restructure the Fund into a private equity-style closed-ended fund with a three-year lockup period as the firm tries to build a longer-term, more stable capital base.
The fund employs LHG’s flagship Diversified Global Macro investment strategy, which aims to capture diversified sources of alpha across global equities, bonds, currency and commodity markets. The investment style is described by the firm as “a hybrid of discretionary macro and systematic CTA, with a quantamental (quantitative + fundamental) research process”. The investment universe is comprised primarily of futures contracts on global equity index, commodity and fixed income markets, as well as the interbank foreign exchange market.
The fund was initially launched as an open-ended structure in late 2017 by LHG’s Founder and Co-CIO, Laurence Yang, with only two outside investors and €15.5 million under management.
Currently, investors can only access the strategy via the firm’s Separately Managed Account (SMA) program.
The Fund reported a 12-month return of 20.59% as of 30 September, 2022, with a maximum peak-to-trough drawdown of -5.81%.
