LHG Capital Management, a hedge fund firm focused on global macro investment strategies, received over US$600 million in net inflows in 2022. The firm’s total assets under management surpassed US$750 million in August 2022, making it one of the largest hedge funds dedicated exclusively to global macro investing in the Asia-Pacific region.
The Flagship Fund
The hedge fund firm’s flagship global macro fund, the LHG Premium Investments Fund (the “Fund”), reported a 6-month return of 15% between October 2021 and April 2022, with a maximum peak-to-trough drawdown of -2.17%.
Following an extensive consultation with its flagship fund investors, LHG's management team decided to restructure the Fund into a private equity-style closed-ended fund with a three-year lockup period as the firm tries to build a longer-term, more stable capital base.
In July, LHG’s existing investors committed an additional €250 million (US$260 million) into the newly-structured closed-ended fund, significantly boosting the firm’s assets under management.
New Product Launches
New product launches also played an important role in expanding LHG’s asset base. In April, the firm launched its first ever onshore Yuan-denominated fund in mainland China. The onshore fund saw strong investor demand and has already stopped accepting outside capital as of August.
In May, the firm also introduced its customized Individually Managed Account offering and hired Zurich-based veteran macro trader and family office advisor Patrick Pfister as its portfolio manager.
Broadened Client Base
When Laurence Yang, LHG’s Co-Chief Investment Officer, first founded the firm in 2017, its investor base consisted of primarily family offices and high-net-worth individuals. Today, the firm has successfully broadened its client base to also include Fortune Global 500 companies, large consortiums and private banks.
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