Caxton Associates
| Company type | Private |
|---|---|
| Industry | Hedge fund, Financial services |
| Founded | 1983 in New York City, United States |
| Founder | Bruce Kovner |
| Headquarters | London , United Kingdom |
Area served | Global |
Key people | Andrew Law (Chairman, CEO) |
| Products | Global macro hedge fund investments |
| Website | www |
Caxton Associates is a global macro hedge fund established in 1983 by Bruce Kovner in New York City. Currently, the company’s main office is located in London, with additional branches situated in New York, Singapore, Monaco, and Dubai. Caxton’s investment decisions are driven by comprehensive research into global markets combined with the evaluation of international economic patterns.
In 2008, leadership shifted when Kovner stepped away from active trading and appointed Andrew Law as Chief Investment Officer. By 2011, Law had assumed the roles of Chairman, CEO, and controlling general partner following Kovner’s retirement. The firm oversees assets totaling $12 billion.
History
Bruce Kovner founded Caxton in 1983 after gaining experience under Michael Marcus at Commodities Corporation (now integrated into Goldman Sachs International) before launching his own firm.
The fund was closed to new investors in 1992 and has reopened and closed multiple times since, most recently in August 2013. By the late 1990s, Caxton Global Investments faced a notable decline in both volatility and returns.
In 2003, concerns about the fund’s size affecting performance prompted Caxton to return 20% of investor capital, reducing assets under management to $9.5 billion. On December 21, 2007, Caxton-Iseman Capital—a joint venture with Frederick Iseman—spun off from Caxton Associates and rebranded as CI Capital Partners LLC.
Kovner stepped back from day-to-day trading in 2008 and named Andrew Law as Chief Investment Officer. After Kovner retired in 2011, Law took over as Chairman, CEO, and controlling general partner. Prior to joining Caxton, Law led FICC proprietary trading at Goldman Sachs in London.
Despite client redemptions amounting to 27% of assets during the 2008 financial crisis, Caxton refrained from imposing gates on capital withdrawals and still delivered a 13% return that year. Many redemptions were linked to clients facing restrictions elsewhere. By 2010, Caxton had returned $12.8 billion to investors while managing $6 billion, ranking it second among managers who returned more capital than they currently manage.
Following a record gain of 40% amid the COVID-19 pandemic in 2020, Caxton announced it would close its primary hedge fund to new investments.
Company
Caxton Associates maintains offices across New York; London's Mayfair district, which has served as its headquarters since July 2019; Singapore; Monaco; and Dubai.
Investments
As a global macro hedge fund, Caxton Associates has generated over $13 billion for clients—achieving roughly 14% annualized returns with about half the volatility compared to the S&P 500. Founder Andrew Law emphasizes three fundamental principles: attentiveness to market signals, understanding political and policy developments, and diligent risk management.
Investment vehicles
By August 2011, Caxton’s flagship fund was responsible for managing $7 billion of the firm’s total assets.