RWC Partners is to launch the RWC Macro Fund at the end of October with an expected minimum size of $30 million. Managed by Peter Allwright and Stuart Frost, the Fund will replicate the Threadneedle Macro Trading Crescendo Fund which generated total returns under their management of over 15% between October 2008 and June 2010. 

The RWC Macro Fund is a discretionary, macro trading strategy investing across liquid rate and currency markets. Equity indices and commodities will also be used to express the macro trading views of the team. Aiming for 15% annualised returns, the strategy is highly liquid and flexible offering an investment approach that can make good positive returns in a variety of market conditions.

“Peter and Stuart have made investors money over the last few months, as they did in the previous credit crisis of 2008,” said Dan Mannix, Head of Business Development, RWC Partners. “They have settled in to RWC Partners extremely well and the liquidity and flexibility of their approach is a perfect complement to investors’ portfolios at this time.”

Allwright and Frost have strong macro trading track records and long-standing careers in trading and research at investment banks. In particular, Frost spent over 20 years at NatWest Markets where he became acknowledged for his skill in chart based trading and analysis.

“Following requests from investors who previously allocated to Peter and Stuart’s hedge fund we have decided to roll out the RWC Macro fund at the end of October,” Mannix said. “We believe the levels of transparency and liquidity that Peter and Stuart’s approach allows is particularly appealing for the current investment climate.”

Allwright and Frost are already responsible for two UCITS IV funds at RWC Partners. The RWC Cautious and Enhanced ARC Funds use a similar strategy to the new fund; although, they are restricted to trading in the rates and currency markets. These funds take smaller risk positions and offer daily liquidity. 

“Between Peter and Stuart they have nearly 50 years of trading experience,” said Mannix. “There is no doubt that markets will be challenging but for experienced and skilful traders opportunities exist.  Macro remains one of the most enduring hedge fund strategies mainly due to its ability to generate returns through the cycle.”

Day one funds in the strategy, which will offer monthly liquidity with 15 days notice, are expected to come from Allwright and Frost’s previous investors. It is RWC's first onshore hedge fund. Subject to approval, it will be structured as an Irish Open Ended Investment Company and will be a Qualified Investment Fund. The minimum investment will be €100,000 or the equivalent.