Moore Capital Management LP
| Moore Capital Management LP | |
| |
| 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[edit]
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[edit]
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[edit]
- Louis Bacon
- Greg Coffey
- Jean-Philippe Blochet
References[edit]
- ↑ Moore Capital Management, LP. Bloomberg.
- ↑ Moore Capital Said to Hire Morgan Stanley Credit Trader Wainer. Bloomberg.
- ↑ Moore Capital Management - Investor Profile. Hedge Tracker.
- ↑ Too Big to Profit, a Hedge Fund Plans to Get Smaller. NY Times Dealbook.
- ↑ Louis Bacon: Macro Maestro. Institutional Investor.
- ↑ Moore Capital, Morgan Stanley, UBS Settle CFTC Cases. BusinessWeek.
- ↑ Moore Capital Management Trader Arrested. BussTab.
- ↑ Moore Capital settles platinum, palladium lawsuit for $48.4 mln. Reuters.