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40. Moore Capital Management / $13.4 billion

Location:

New York, NY

Founded:

1989

2016 Hedge Fund 100 Rank:

No. 35

2016 Capital:

$15.5 billion

2015 Hedge Fund 100 Rank:

No. 38

2015 Capital:

$14.85 billion

Years on List:

Website:

www.moorecap.com

Address:

11 Times Square
New York, NY 10036

Phone:

212-782-7000

Fax:

212-782-7194

Other Offices:

New York, London, Hong Kong and Washington, D.C.

Profile & News

Firm Overview

New York–based Moore Capital Management is one of the most iconic hedge fund firms in the industry, though it has been a victim of its own success. The global macro firm, founded in 1989 by former Shearson Lehman Brothers senior vice president, futures, Louis Bacon, returned $2 billion to investors in 2012 after the firm’s flagship macro Moore Global Investment Fund returned only 0.3 percent for the year. Though the move reduced fee revenue, Bacon, who is based in London, told investors the fund had gotten too big to match its prior returns.

So far, Bacon’s decision has played out nicely, putting Moore Capital on track for its highest returns in years in 2013. Moore ranked as one of the top macro hedge funds that year, with solid performance in the firm’s flagship funds. Moore Global Investments gained 12.75 percent through the end of September 2013, and the multistrategy Moore Macro Managers Fund gained 10.9 percent. Since inception, the flagship fund has averaged an 18.8 percent annual return. Bacon previously returned capital in 1999 and 2001, when firm-wide losses fell far short of the firm’s heady double-digit returns of the 1990s. Growth flattened in 2014, however, with firmwide assets dipping $50 million between 2014 and 2015. The funds posted feeble gains: Moore Global Investments rose 1.74 percent in 2014 while Moore Macro Managers was up 5.54 percent.

Like many firms, Moore fell on hard times following the financial crisis of 2008. After losing $5 billion to investor redemptions that year, Bacon developed a powerful marketing team and modified the firm’s management and investing style to reflect the changing market environment. The firm, traditionally U.S.- and European-centric, making top-down, interest-rate-driven investments, was pushed to initiate several exchange-traded funds as market trends became harder to play. The firm also branched out into emerging markets. Today, 29 percent of its $4.7 billion U.S. stock portfolio consists of ETFs to make long bets on the direction of the broad markets. Moore’s emerging-markets guru, Gregory Coffey, believed to have been Bacon’s eventual successor, retired in October 2012, liquidating his GC Moore Emerging Macro fund and returning $100 million to investors in the process.

Bacon is a longtime veteran of Alpha’s Rich List, although he has not qualified since 2011. Bacon made $230 million in 2010, but his firm’s two biggest funds lost 2 percent to 3 percent each the following year. He was inducted into Alpha’s Hedge Fund Hall of Fame in 2008. Bacon is an environmental conservationist, setting up the Moore Charitable Foundation in 1992 to protect natural resources. His stepmother is the sister of Tiger Management Corp.’s Julian Robertson Jr.

Strategy

Moore Capital manages three primary strategies: global macro, macro managers and emerging markets. The global macro strategy invests in foreign exchange markets, interest rate instruments, stock indexes and equities via investments in derivatives markets. The macro managers strategy invests in foreign exchange markets, government and corporate debt securities, interest rate instruments, stock indexes, precious metals and equity securities through investment in derivatives markets. The emerging-markets strategy invests in foreign exchange and interest-rate-sensitive instruments in emerging markets and in developed markets for hedging and risk management. The emerging-markets strategy may also invest in equity securities, stock indexes, precious metals, and traditional and base industrial commodities.

Funds and Fees Overview

The management fee is a percentage of the net assets in a fund and generally ranges from 2 percent to 3 percent per annum paid monthly in advance. The profit share allocation is equal to a percentage of the excess of net assets in the fund over net assets in the fund at the last profit share allocation date and is generally 25 percent.

Moore Global Investments
Inception Date:	01/01/1990

Moore Macro Managers
Inception Date:	07/31/1993

A minimum initial investment in a fund managed by Moore Capital is $1 million. A minimum subsequent investment is typically $100,000.

Clients

Investors in Moore’s funds include high-net-worth individuals, trusts, pension and profit sharing plans, corporations and charitable organizations.

Regulatory Assets Under Management (RAUM)*
Discretionary	$32.68 billion (7 accounts)
Nondiscretionary	$0 (0 accounts)
Total	$32.68 billion (7 accounts)

Employees	442
Clients	1–10 total	57 percent non-U.S.
Fiscal Year Ends	December
All data as of December 31, 2014. *Regulatory Assets Under Management (RAUM) includes no deduction of offsetting liabilities, thus representing gross AUM, not net AUM. RAUM calculations include leverage, proprietary assets and uncalled capital commitments, among other items not required in the calculation of AUM.

Owners and Executives

Name	Position	Position Held Since
Louis Moore Bacon	Chairman, CEO	03/1989
Mildred Crocker	Director, President	01/1995
Richard Axilrod	Director, Managing Director	08/1997
Patrick Finley	CCO	08/1999
Anthony Deluca	Director, CFO	10/2006
James Kaye	Director, Chief Legal Officer	02/2007
Gregory Coffey	Limited Partner	11/2008
Scott Lawin	Director, COO	01/2010
Zack Bacon	Director	02/2012