Moore Capital Management LP

From MarketsWiki
Jump to: navigation, search
Moore Capital Management LP
Moore Capital.jpg
Founded 1989
Headquarters New York
Key People Louis Bacon
Employees 450
Products Asset Management

Moore Capital Management LP is an employee-owned hedge fund sponsor providing its services to institutions and high-net-worth individuals.[1] The firm is run by founder Louis Bacon. As of July 2013, the firm held approximately $12.1 billion in assets under management. [2]

Moore operates a number of hedge funds including its flagship Moore Global Investment fund, Moore Capital Emerging Markets, Moore Global Fixed Income, Moore Japan Restructuring, Remington Investment Strategies, and Valence Capital Management.[3]

History

Bacon started Moore Capital in 1989 and, in the following year, he placed a series of trades around Saddam Hussein's invasion of Kuwait and the subsequent gulf war. The firm's resulting 115 percent two-year return led to a substantial inflow of assets under management. [4] Over the years, Bacon enjoyed continued success in analyzing geopolitical events and their effects on the market. His 20-year track record from 1990 to 2010 was 20.5 percent.[5]

At its peak in 2003, Moore managed over $20 billion. After a 15 percent drawdown during the 2008 crisis, a period which Bacon said he was "demoralized" because the firm had called for a market panic yet still lost money, Bacon decided to return $2 billion to investors. In 2012, during the European debt crisis, a political environment that Bacon said is "trying to thwart natural market outcomes," he opted downsize the flagship fund.

Legal Troubles

In May of 2010, Moore Capital Management LP, Morgan Stanley and UBS AG’s securities division agreed to pay more than $39 million to settle separate allegations regarding trading on the New York Mercantile Exchange. Moore Capital would pay $25 million to settle the U.S. Commodity Futures Trading Commission’s allegation that a former portfolio manager attempted to manipulate platinum and palladium futures during a surge in prices two years ago.[6]

In March of 2010, a Moore Capital Management trader was arrested in conjunction with charges of insider trading on London.[7]

In August 2013, Moore Capital agreed to pay $48.4 million to settle a class-action lawsuit asserting that the hedge fund manipulated platinum and palladium prices by engaging in a practice known as "banging the close." Under the settlement, Moore is under a two-year restriction from trading within 15 minutes of the close in the palladium and platinum futures and options markets. [8]

Key People

References

  1. Moore Capital Management, LP. Bloomberg.
  2. Moore Capital Said to Hire Morgan Stanley Credit Trader Wainer. Bloomberg.
  3. Moore Capital Management - Investor Profile. Hedge Tracker.
  4. Too Big to Profit, a Hedge Fund Plans to Get Smaller. NY Times Dealbook.
  5. Louis Bacon: Macro Maestro. Institutional Investor.
  6. Moore Capital, Morgan Stanley, UBS Settle CFTC Cases. BusinessWeek.
  7. Moore Capital Management Trader Arrested. BussTab.
  8. Moore Capital settles platinum, palladium lawsuit for $48.4 mln. Reuters.