Greg Coffey’s Hedge Fund Grows to $4 Billion After 23% Gain Last Year
Greg Coffey’s Hedge Fund Grows to $4 Billion After 23% Gain Last Year
(Bloomberg) -- Trading veteran Greg Coffey came out of retirement to start a hedge fund -- and it’s paying off.
His Kirkoswald Global Macro Fund soared 23% in 2021, well ahead of peers, according to a person with knowledge of the matter. The returns helped lure more clients and grow assets to about $4 billion, up from about $500 million in 2018 when it started trading, the person said, asking not to be identified because the information is private.
Coffey, 50, who focuses mostly on emerging markets, was one of the best-performing macro traders last year when some rivals were slammed by volatility in developed market bonds. Macro hedge funds ended the year up just 6%, data compiled by Bloomberg show, while investors pulled $6.7 billion from the strategy in the year through November, according to data compiled by eVestment.
It’s not clear how Coffey made his money but a number of emerging markets funds had a strong year, following quick moves in some developing nations to tighten monetary policy in response to rising inflation and a stronger dollar.
| Kirkoswald Global Macro | Return (%) | Bloomberg Macro Index |
|---|---|---|
| 2021 | 23% | 6.1% |
| 2020 | 18 | 7 |
| 2019 | 28 | 6.5 |
| 2018* | 5.4 | -5.4 |
| *Returns from April when the fund started trading | ||
| Source: Bloomberg reporting | ||
A spokesman for New York-based Kirkoswald Asset Management declined to comment.
Coffey was once a top performer and among the best-paid traders at GLG, managing $7 billion and before his hedge fund plunged in 2008. When the Australian left to join Moore Capital Management, boss Louis Bacon called him “one of the most impressive traders in the world.”
After bowing out of the industry in 2012, Coffey returned to launch Kirkoswald in 2018 in London, later moving his headquarters to New York to help expand. He is in the process of starting a fund that allows clients daily access to their money under European rules, while also building a long-only business led by former JPMorgan Asset Management executive Diana Amoa.
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