BlueCrest - just incredible
Performance (didn't need to put a + or -, they are all positive)
2022: 114% (so far)
2021: 30%
2020: 95%
2019: 50%
2018: 25%
2017: 54%
2016: 50%
Has anybody any insight on how they operate?
Michael Platt seems also a funny guy - go and check the video where he was sitting on the backseat of an Uber years ago
Holy shit
I felt like an idiot when I saw the BBG news but at the same time it's a boost ("it's possible")
Platt is a legend
How do you make +100% returns going against treasuries? (I know it is more than that, but looking for additional info!)
If I had to take a guess, extreme amounts of leverage would be my guess. CME website has some more details but for a really approachable example of bond performance ytd, check out TYO. It's a 3X-leveraged ETF short treasuries that's up nearly 60% YTD and it only represent the 7-10 year maturities. Probably also generated value shorting front end of the curve and additional leverage employed across the whole strategy.
They take alot more risk than normal platforms (maybe 2-3x more levered than other macro and rates platforms), they have arguably the best PMs out there (because they generally pay the most), and they’re much more flexible from a structural perspective.
Anyone know of similar funds with similar vibe? Would be curious
http://data.treasury.ri.gov/dataset/96dcb86f-e97e-4b05-8ce2-a40289e477a…
Great write up on the funds process. Says here they were running approx 5.7x gross leverage. Now that they dont have outside capital they're probably running 2x that.
Platt said he'd increase leverage 4x when they converted to a FO
These returns are misleading. These are returns on *cash invested*, not on the return of the fund. Because they are a family office, they don't have to report returns to investors the way most hedge funds do. My guess is that they're achieving somewhere between 20-30% annualized returns on capital (my good friend worked there from 2015-2019 and he agrees) - which is still extremely impressive of course. Just wanted to make sure people understood that these are overstated returns.
Bingo
Excuse my ignorance but what is the difference between return on cash invested vs fund return?
Fund return: PnL/ fund assets
Return on cash invested: PnL / cash invested
If u have 1 bn $ under management, u don't have 1 bn $ invested. Probably about a few hundreds millions
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