Macro hedgies struggling to hold on to gains

SOME of the hedge fund industry’s best-known macro hedge fund managers are struggling this year to generate returns befitting their star status.

The market segment made famous by George Soros was down 3.09 per cent in the 10 months to 31 October, the HFRI Macro (Total) Index showed.

In a 2011 littered with market-moving events, veteran managers such as Louis Bacon and Paul Tudor Jones might have been expected to book record profits, but many have fallen flat.

“For many macro guys, the retention of profits has been poor. It’s not a world in which macro funds have covered themselves in glory,” Luke Ellis, head of Man Group’s multi-manager business, said. “Overall it’s been disappointing.”

Louis Bacon’s Moore Global Investments fund has fallen 2.6 percent in the year to 18 November, while Fortress Investment Group’s flagship macro fund was down around 10 per cent by late November, one investor said.