BlueCrest Capital Ringing in the New Year with Great Gains for 2019

December 30, 2019 James Heinsman Company Spotlight

Michael Platt’s BlueCrest Capital, now a private investment firm, saw profits climb by about 50% this past year. The hedge fund has had a run of great years since it gave back outside investors’ funds and became a strictly family investment company.

Until 2015 BlueCrest was one of the world’s largest hedge funds. The company makes its money trading interest rates and emerging market bonds.

The company’s gains outpaced the hedge fund average returns by a huge margin in 2019. For the first 11 months of 2019 hedge funds grew by about 9% on average, according to the data group HFR, way behind the S&P 500 index gain of 28%. Relatively speaking, BlueCrest performed marvelously.
Since 2015, when the firm closed to outside money, the company has been on a roll. In 2016 they posted 50% growth, and 54% in 2017. The year 2018 was a bit harsher for the entire hedge fund world in which funds lost money, on average, so BlueCrest’s gain of 25% is impressive.

BlueCrest Capital International macro fund, the firm’s flagship fund, posted 45% return in 2009, and grew to $14 billion at its height of power. In 2012 the entire firm was controlling about $36 billion in assets. When profits slowed, Platt decided to bring the company back home, saying that his intuitional investors held him back from taking larger risks. Now that it is exclusively his family’s money, he feels less constrained and can take more risks.

BlueCrest Capital, Michael Platt,

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