In the investment industry, hedge fund managers are rock stars. Hedge fund managers invest money for the super-rich as well as for institutional investors. In July 2017, hedge funds had more than $3.1 trillion in assets under management. Five macro hedge funds make a lot of noise in the industry thanks to the hedge fund managers who work for them as well as the investors who like to take risks in order to reap the big rewards. Those five hedge funds are Bridgewater Associates with $58.9 billion in assets under management, Man Group with $39.2 billion under management, Paulson &CO with $35.1 billion under management, Brevan Howard with $31 billion under management and Och-Ziff with $29.4 billion assets under management.
Brevan Howard like other global macro funds invests in bond, currency and shared markets in anticipation of macroeconomic events that can pay off. Those investments can also cost investors a bundle if hedge fund managers don’t do their homework or something unexpected happens, and the fund falls apart. The unexpected happened in 2008 when the housing market crashed. Hedge funds around the world took a beating. Hedge funds go out of business every year, but the big hedge funds like Brevan Howard have enough assets and their clients have enough faith in the ability of hedge fund managers to stick it out after a big loss.
Ben Milkman is one of the hedge fund managers at Brevan Howard who did his homework right before Argentina held their 2015 presidential election. Melkman decided that Buenos Aires mayor and opposition leader Mauricio Macri would win that election and turn the country around. Melkman knew what to do at Brevan Howard as well as in the macro investment world, so he didn’t disappoint the investors who trusted him. The Argentinian bond investment fund he set up was a bigger winner in 2016. The $500 million Argentinian fund returned 18 percent in 2016 when other macro funds struggled to return less than five percent.
Ben Melkman joined Brevan Howard in 2009 after spending five years at Morgan Stanley. Ben started his investment career at Deutsche Bank in 2003. According to a Business Insider article, Melkman is a talented hedge fund investor who he has a knack for picking winners. Ben’s name is on top of the list in the macro hedge fund world thanks to earning the respect of billionaire Steven Cohen and Dan Loeb.
Dan Loeb and Steven Cohen thought enough of Ben Milkmen to invest in his Light Sky Macro fund when Ben left Brevan Howard in 2016. Milkmen’s was able to accumulate $1.6 billion in assets under management. The investment gurus watched as Milkman work his magic in the macro investment world, but 2017 wasn’t the best year for macro hedge funds. Light Sky’s assets fell a little in 2018. But most super-investors know there are challenges hiding in all investments.
Light Sky is still a force in the macro investment industry, and Ben Milkman is still a superstar. Some investors say he has the same investment gift that George Soros and John Paulson have.
Learn more about Ben Melkman: https://www.bloomberg.com/research/stocks/private/person.asp?personId=315822662&privcapId=402800760