Caxton Associates, one of the world’s oldest and best-known macro hedge funds, is raising its fees and preparing to shut one of its funds to new money as it reaps big gains from bets on surging inflation and higher interest rates.
The London-based firm, which was founded by US billionaire Bruce Kovner in 1983 and is now headed by Andrew Law, has more than doubled its assets in a little over two years to more than $11bn — helped by record gains in 2020 and further profits at the start of this year. As a macro fund, Caxton wagers on moves in bonds, currencies and other assets, which can be influenced by the outcomes of economic and political events.
Caxton is now raising the management fee on its flagship Global fund from 2 per cent to 2.25 per cent, while it increases the vehicle’s performance fee from 22.5 per cent to 25 per cent, according to investor documentation seen by the Financial Times and a person familiar with its plans.