Moore Capital Management
Encyclopedia
Moore Capital Management LLC is an American hedge fund
sponsor-owned by its employees. It was founded in 1989 by Louis Bacon
. and in 2011 Moore Capital Management's (MCM) largest funds were the $7.4 billion Moore Global Investment Fund, and the $4.6 billion Moore Macro Managers Fund.
, Zurich
, Hong Kong
and Washington, D.C.
. MCM maintains six offshore funds and domestic equivalents of its largest funds. As of the end 2010, its fund's values were valued at: Moore Global Investments and Remington combined; $8.2 billion, Moore Macro Managers; $4.3 billion; Moore Emerging Markets; $1.5 billion. The remaining three funds each in possession of between $81 million and $324 million.
MCM is characterized as a global macro
investor, utilizing macroeconomic themes, cash, futures and derivatives in its portfolios
. Bacon, its founder, participates in most of the global markets, basing his moves on his evaluation of the future trends of inflation
, economic growth, central bank
policy and national politics. He then determines what themes and investments to play based on data from his strategists and researchers.
MCM's first investor was Antoine Bernheim, president of Dome Capital Management, who in 1990 accounted for $1.5 million of MCM's initial $1.8 million in assets and redeemed his investment in 2009.
MCM launched the Moore Macro Managers Fund in 1993 and is led by 14 manager teams. From 1993 until 2009, the Macro Managers fund held the name, Moore Global Fixed Income Fund. Until 2002, Bacon himself was very much involved in the management of the fund but later it became a macro fund and the name was revised accordingly. Between 2002 through 2005, its assets under management grew to $4 billion from $1.8 billion.The fund has not had any down years and has compounded at 15 percent annually through 2010.< The firm might cap the fund soon, when it reaches $4.5 billion to $5 billion.
In 2008, MCM let nervous investors redeem $5 billion in shares despite decent performance.
In 2009 MCM launched two new funds; Moore Emerging Equity Long/Short Fund and Moore Emerging Fixed Income and Currency Fund. The company also offered incentives for new investors in other funds.
In 2010, British regulators entered MCM's London offices and arrested trader Julian Rifat, for allegedly participating in illegal insider trading in concert with other traders. Rifat was put on leave during the investigation.
In April of that year, MCM paid $25 million to settle the charges brought against it by the Commodity Futures Trading Commission
(CFTC) which accused MCM of manipulating settlement prices for Nymex platinum and palladium futures contracts. Charges were also filed by the CFTC, against MCM for failure to “diligently supervise” MCM's commodity interest transactions. The case was settled without much reaction from MCM's investors. According to MCM, the individual responsible for the CFTC infraction left the company in 2008 and members of current management had not been accused of any wrongdoing.
In September 2010, the firm had $4,118 million in US equity assets under management
.
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
sponsor-owned by its employees. It was founded in 1989 by Louis Bacon
Louis Bacon
Louis Moore Bacon is an American hedge fund manager, trader and founder of Moore Capital Management.-Family and education:Bacon was born in Raleigh, North Carolina; his father, Zachary Bacon Jr., founded Bacon & Co. and led Prudential Financial’s and Merrill Lynch’s real estate efforts in North...
. and in 2011 Moore Capital Management's (MCM) largest funds were the $7.4 billion Moore Global Investment Fund, and the $4.6 billion Moore Macro Managers Fund.
Description
MCM was founded in New York, New York and maintains its headquarters there. MCM has 429 employees worldwide with satellite offices in New York, LondonLondon
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
. MCM maintains six offshore funds and domestic equivalents of its largest funds. As of the end 2010, its fund's values were valued at: Moore Global Investments and Remington combined; $8.2 billion, Moore Macro Managers; $4.3 billion; Moore Emerging Markets; $1.5 billion. The remaining three funds each in possession of between $81 million and $324 million.
MCM is characterized as a global macro
Global macro
Global Macro is defined as the strategy of investing, on a large scale, around the world using economic theory to justify the decision making process...
investor, utilizing macroeconomic themes, cash, futures and derivatives in its portfolios
Portfolio (finance)
Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.-Definition:The term portfolio refers to any collection of financial assets such as stocks, bonds and cash...
. Bacon, its founder, participates in most of the global markets, basing his moves on his evaluation of the future trends of inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
, economic growth, central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
policy and national politics. He then determines what themes and investments to play based on data from his strategists and researchers.
History
Moore Capital Management MCM was founded by Bacon in 1989, who launched Moore Global Investments in 1990 using the $25,000 he inherited from his mother and named the company using his middle name.MCM's first investor was Antoine Bernheim, president of Dome Capital Management, who in 1990 accounted for $1.5 million of MCM's initial $1.8 million in assets and redeemed his investment in 2009.
MCM launched the Moore Macro Managers Fund in 1993 and is led by 14 manager teams. From 1993 until 2009, the Macro Managers fund held the name, Moore Global Fixed Income Fund. Until 2002, Bacon himself was very much involved in the management of the fund but later it became a macro fund and the name was revised accordingly. Between 2002 through 2005, its assets under management grew to $4 billion from $1.8 billion.The fund has not had any down years and has compounded at 15 percent annually through 2010.< The firm might cap the fund soon, when it reaches $4.5 billion to $5 billion.
In 2008, MCM let nervous investors redeem $5 billion in shares despite decent performance.
In 2009 MCM launched two new funds; Moore Emerging Equity Long/Short Fund and Moore Emerging Fixed Income and Currency Fund. The company also offered incentives for new investors in other funds.
In 2010, British regulators entered MCM's London offices and arrested trader Julian Rifat, for allegedly participating in illegal insider trading in concert with other traders. Rifat was put on leave during the investigation.
In April of that year, MCM paid $25 million to settle the charges brought against it by the Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
(CFTC) which accused MCM of manipulating settlement prices for Nymex platinum and palladium futures contracts. Charges were also filed by the CFTC, against MCM for failure to “diligently supervise” MCM's commodity interest transactions. The case was settled without much reaction from MCM's investors. According to MCM, the individual responsible for the CFTC infraction left the company in 2008 and members of current management had not been accused of any wrongdoing.
In September 2010, the firm had $4,118 million in US equity assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
.