Element Capital Management
 | |
| Company type | Private |
|---|---|
| Industry | Investment Management |
| Founded | April 2005 |
| Founder | Jeffrey Talpins |
| Headquarters | New York City, New York, U.S. |
| Products | Hedge fund |
| AUM | US$3 billion (as of January 21, 2025) |
Number of employees | 66 (2025) |
| Website | elementcapital |
Element Capital Management is a U.S.-based hedge fund established in 2005 by Jeffrey Talpins that focuses on a macroeconomic investment approach on a global scale.
Company overview
Located in New York City, Element Capital expanded its presence by opening an office in London's Mayfair district in 2015. Its clientele comprises prominent institutional investors such as Harvard University, the John D. and Catherine T. MacArthur Foundation, the Teachers Retirement System of Texas, and the Alaska Permanent Fund.
To preserve its optimal operational scale, the fund generally restricts new capital inflows, most recently reopening for investments in mid-2018 when it raised $3 billion mainly from its existing investor base. By the end of 2018, Element Capital's assets under management surpassed $50 billion.
In early 2020, the firm deliberately decreased its assets under management by 20% to emphasize performance quality over asset expansion. During the first part of 2021, approximately $2 billion in profits were distributed back to clients to maintain controlled fund size and prioritize returns instead of asset growth.
Continuing this disciplined approach, Element Capital returned over $6 billion to investors in 2024, shifting its focus toward predominantly managing internal capital. This strategic adjustment was intended to improve performance after experiencing cumulative losses near 20% between 2021 and 2023. The fund recovered with a 22.5% gain in 2024.
Investment strategy
The firm applies a global macroeconomic investment method that capitalizes on political and economic developments worldwide rather than analyzing individual company fundamentals. Talpins employs options strategies designed to benefit from anticipated global economic changes while managing downside risk.
Performance
Since its inception in 2005 through March 2019, the fund has delivered an average annual return of 21%, without any negative years. It notably achieved a 35% gain amid the 2008 financial crisis and posted a remarkable 79% return in 2009.
Key people
Jeffrey Talpins, who founded the company, has acted as CEO and chief investment officer since April 2005. In 2012, Adam Prestandrea joined from EIM SA as a senior executive. To strengthen macro investment research, Colin Teichholtz, formerly head of fixed income at Blue Mountain Capital, was recruited in October 2019. In September 2021, Gertjan Vlieghe, previously a member of the Bank of England’s Monetary Policy Committee, was named chief economist.