BlueCrest_Capital_Management

BlueCrest Capital Management

BlueCrest Capital Management

British Investment Firm

BlueCrest Capital Management is a British-American investment firm which was founded by British billionaire Michael Platt and American William Reeves in 2000.[1]

Quick Facts Company type, Industry ...

Background

Bluecrest was founded in 2000 as a hedge fund by Michael Platt and William Reeves who were both previously senior proprietary traders at JPMorgan Chase. [1][2]

In 2014, Bluecrest spun off $8.2 billion worth of assets into a new company, Systematica Investments, run by Bluecrest employee, Leda Braga. CNBC has referred to Braga as "the most powerful woman in Hedge Funds", earning in excess of $50 million annually.[3][4]

In 2015, Bluecrest announced its plans to return all outside capital to investors and transition into a private investment partnership that would manage money for its partners and employees.[5][6]

The fund generated returns of 50% in 2016, 54% in 2017,[7] 25% in 2018 when the average hedge fund lost money, and 50% in 2019.[8]

In March 2020, BlueCrest reduced the size of its relative-value trading book, which seeks to exploit anomalies in related securities. The company also cut risk across the firm by about $1 billion. BlueCrest suffered some losses after the sell-off, but the investment fund was up for the year through the close of trading on 11 March.[9]

On 8 December 2020, The Securities and Exchange Commission announced that UK-based investment adviser BlueCrest Capital Management Limited has agreed to pay $170 million to settle charges arising from inadequate disclosures, material misstatements, and misleading omissions concerning its transfer of top traders from its flagship client fund, BlueCrest Capital International (BCI), to a proprietary fund, BSMA Limited, and replacement of those traders with an underperforming algorithm.[10]

References

  1. [1]
    "Michael Platt And William Reeves Bio, Returns, Net Worth". Insider Monkey. Retrieved 8 February 2013.
  2. [2]
    Vardi, Nathan. "Billionaire Michael Platt Closes His BlueCrest Hedge Fund". Forbes. Retrieved 28 January 2024.
  3. [3]
    "Leda Braga". equinoxfunds.com. 19 March 2022.
  4. [4]
    Nathan Vardi. "Leda Braga - In Photos: The 40 Highest-Earning Hedge Fund Managers". Forbes.
  5. [5]
    Stevenson, Alexandra; Goldstein, Matthew (1 December 2015). "BlueCrest to Close Hedge Fund and Refund Outside Investors". The New York Times. ISSN 0362-4331. Retrieved 9 August 2017.
  6. [6]
    "Hedge fund firm BlueCrest Capital Management to go private". Reuters. 1 December 2015. Retrieved 9 August 2017.
  7. [7]
    "Returns".
  8. [8]
    Fletcher, Laurence (29 December 2019). "Ex-hedge fund BlueCrest extends winning run with 50% gain this year". www.ft.com. Retrieved 24 December 2019.
  9. [9]
    "BlueCrest Shrinks From Relative-Value Trades Amid Losses, Exits". Bloomberg.com. 13 March 2020. Retrieved 7 August 2020.
  10. [10]
    Michaels, Dave (8 December 2020). "BlueCrest Capital Management to Pay $170 Million to Settle SEC Claims". Wall Street Journal.
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