What is Moore Capital？
Founded in March 1989, Moore Capital Management is a private investment management firm that invests in the global financial markets. Headquartered in New York, with additional offices in London and Hong Kong, it provides investment management services to its institutional and high net worth clients through several privately offered funds, including two global diversified hedge funds, as well as funds that concentrate on the global fixed income and emerging market sectors.
Pros & Cons
Pros:
Established Reputation: Founded by billionaire Louis Moore Bacon in 1989, indicating long-term experience and credibility.
Good Historical Performance: Notable performance with the main fund, Moore Global Investors, posting an annualized return of 15.8% since inception as of June 2018.
Global Macro Investment Strategy: Utilizes a diverse and comprehensive investment strategy based on macroeconomic themes and trends.
Adaptability: Launched new funds in 2009 and offered incentives for new investors, showcasing flexibility in response to market conditions.
Cons:
Regulatory Status Revoked: The firm's regulatory status with the Securities and Futures Commission (SFC) has been revoked, raising concerns about compliance and oversight.
Employee Legal Issues: In 2010, an employee was arrested for insider trading, although not directly affecting MCM funds, it tarnished the firm's reputation.
Settlement Costs: Paid substantial settlements ($48.425 million to the CFTC and $48.4 million for a class action lawsuit) related to market manipulation claims.
Is Moore Capital Legit？
The revocation of Moore Capitals SFC status and the ongoing shifts in its business model could be red flags for potential investors. It is advisable for investors to conduct thorough due diligence, considering both the firm's historical performance and its current regulatory and operational status before making any investment decisions.
Market Instruments
Moore Capital Management (MCM) is a hedge fund known for its strategic and diversified investment approach across a broad spectrum of markets. The firm invests in foreign exchanges, capitalizing on currency fluctuations and trends. It also holds positions in government and corporate bonds, leveraging fixed income securities to balance risk and return.
Interest rate instruments are another key component, allowing MCM to hedge against rate changes and inflation. In the equity markets, MCM invests in individual securities and stock indexes, seeking opportunities for growth and value. The firm also trades in precious metals like gold and silver, as well as traditional and base industrial commodities such as oil and copper, to capitalize on market cycles and economic shifts. Additionally, MCM explores emerging markets, identifying high-growth potential in developing economies.
Deposits & Withdrawals
Moore Capital Management mandates a significant initial investment threshold for those looking to invest in its managed funds. Prospective investors are required to make an initial deposit of at least $1 million, reflecting the firm's focus on high-net-worth individuals and institutional investors. Subsequent investments typically require a minimum of $100,000. However, the investment commitment can range from $0 to $10 million for non-related persons, depending on the specific fund and investment strategy.
While the firm does not enforce a standard minimum account size, the general requirement for funds offered to investors typically ranges between $500,000 and $1 million. Moore Capitals client base consists exclusively of seven privately offered investment funds, including individual investors, trusts, pension plans, charitable organizations, and businesses, underscoring the firm's tailored approach to high-stakes, sophisticated investment management.
Fees
Moore Capital Management employs a flexible fee structure for its clients, primarily charging a management fee based on the net assets of the funds it manages. Although there is no fixed fee schedule, the management fees for most funds typically range from 0.50% to 2.00% on an annualized basis, billed monthly in arrears.
In addition to these management fees, the funds incur brokerage commissions on securities transactions, reflecting the cost of executing trades. Furthermore, some funds might be subject to a profit share allocation, a performance-based fee that is a percentage of the fund's net asset growth over a specified period.
Customer Service
Moore Capital Management provides multiple ways to get in touch.
Address: 1251 Avenue of the Americas, New York, NY, 10020-1104, USAPhone number: (212) 782-7000Fax: (212) 782-7194.
Conclusion
In conclusion, Moore Capital Management stands out as a seasoned hedge fund with a robust history of diverse and strategic investments across various markets. While it boasts impressive long-term performance and a flexible investment approach, potential investors should be mindful of its significant initial investment requirements, varied fee structure, and past regulatory challenges. Overall, Moore Capital remains a reputable choice for high-net-worth individuals and institutional investors seeking sophisticated, macroeconomic-driven investment opportunities.
Frequently Asked Questions (FAQs)
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
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