In 2018, hedge funds had $3.2 trillion in assets under management. Hedge fund managers are the heart and soul of these giant investment vehicles. Most hedge fund managers want to be like billionaire George Soros. And just like Soros, they want to continue to score year after year. But most hedge fund managers don’t have breaking the Bank of England on their resume. In the 1990s, George Soros thought the British pound would fall against the dollar and the euro. Soros bet a bundle of cash that the pound would crash, and when it did, George made $1 billion of that bet, and his investors made billions more.
John Paulson is another superstar macro hedge fund investor. Paulson & Co. has more assets under management than any other hedge fund on the planet, according to Business Insider. Paulson proved he had the same knack for investing as Soros when he bet the housing market would crash in 2008. Every hedge fund manager wants to have those credentials on their investment resumes, but producing returns like Soros and Paulson isn’t easy. But according to the experts in the macro hedge fund industry, Ben Melkman has what it takes to be another Soros or Paulson.
Ben Melkman started his investment career with Deutsche Bank in 2003. He cut his investment teeth at Deutsche Bank, but he decided to join Morgan Stanley in 2004. Ben spent five years at Morgan Stanley. He gained a lot of respect from investors as well as from other macro hedge fund managers. Ben caught Brevan Howard’s attention after posting several decent returns while he managed funds for Morgan Stanley. In 2009, Brevan Howard, the macro hedge fund with more than $31 billion in assets under management, hired Ben Melkman.
Brevan Howard gave Ben Melkman the exposure he needed to move to the next step in his hedge fund career. In 2015, Ben noticed a bond investment opportunity in Argentina. Argentina wasn’t a country that attracted hedge fund managers. The country defaulted on their bonds twice between 2007 and 2015. During those years, Cristina Fernández de Kirchner was president of Argentina. Cristina wasn’t the best financially savvy president in Argentina’s history.
But in 2015, opposition leader Mauricio Macri the mayor of Buenos Aires challenged de Kirchner. Macri promised he would bring financial security back to the country. Macri decided to sell bonds again even though Argentina’s bond return reputation was in the toilet. But Ben Melkman saw something in Macri’s leadership style that other investors didn’t see. Ben Melkman’s $500 million Argentina hedge fund was a hit that no one saw coming except Melkman. In 2016, Melkman’s Argentinian hedge returned 18 percent to investors like Dan Loeb and Steven Cohen.
In 2016, Ben decided to start his own hedge fund. Ben calls the fund Light Sky. Cohen and Loeb helped him accumulate more than $1.6 billion in assets under management. Light Sky’s performance is still under construction, according to Light Sky investors. In 2018, Light Sky didn’t perform up to expectations. But in the macro hedge fund world, Light Sky and Ben Melkman are the future, according to a recent business insider article.
Find more about Ben Melkman: https://www.bloomberg.com/research/stocks/private/person.asp?personId=315822662&privcapId=402800760