Palinuro Capital, a new global macro hedge fund based in Amsterdam, has secured nearly $100m in investment commitments and is gearing up to begin trading in January, according to a report by Reuters citing the firm’s founder Alfonso Peccatiello.
Global macro hedge funds typically trade across a broad spectrum of assets, including bonds, currencies, and commodities, by making bets on key economic indicators such as growth, inflation, and geopolitical developments.
Palinuro Capital is aiming to deliver an average annual return of over 10%, with a focus on outperforming the market during periods of heightened volatility, according to Peccatiello who is also the fund’s Chief Investment Officer. “Our goal is to serve as a portfolio diversifier for investors,” he told Reuters.
Investor sentiment toward hedge funds is increasingly positive, according to a recent BNP Paribas survey. The survey found that macro strategies ranked third in terms of popularity for investment allocations, behind equity and credit strategies. “Discretionary macro is benefiting from the market effects of inflation and monetary policy surprises,” the survey noted.
“In a year like 2022, when bonds, expected to be a safe haven, fail to diversify portfolios, that’s when we step in,” Peccatiello explained.
Palinuro Capital’s initial commitments come from a variety of investors, including family offices, pension funds, endowments, and asset managers, Peccatiello confirmed. The Cayman Islands-domiciled fund will undergo a three-month onboarding period before beginning active trading in January, with Goldman Sachs serving as its prime broker.
The fund will primarily trade futures, options, and swaps, with a strong emphasis on interest rates and currencies across different regions. While it will also invest in equities and commodities, the main focus will remain on macroeconomic factors.
