Billionaire Platt’s BlueCrest Is Said to Gain 30% This Year

Updated on
  • Bluecrest uses more leverage since returning client money
  • Founder Michael Platt has a $1.9 billion fortune, index says

Billionaire Michael Platt’s BlueCrest Capital Management posted a gain of about 30 percent in the first half of the year, according to a person with knowledge of the matter, who asked not to be identified because the details are private.

The boon extends a run of high returns since BlueCrest announced plans in late 2015 to give back client money -- about $7 billion of the $8 billion it managed. The fund had a gain of almost 50 percent last year, a separate person familiar with the matter said in January. A spokesman declined to comment on the returns.

Michael Platt. Source: BlueCrest Capital Management

Michael Platt.

Source: BlueCrest Capital Management

The performance at BlueCrest, which trades with high levels of borrowed capital, contrasts with losses at some of the world’s largest hedge funds. Andrew Law’s Caxton Associates lost 10.4 percent in the first six months of the year, while Brevan Howard Asset Management’s main hedge fund suffered its worst loss for a first half since it began trading in 2003, dropping 5.2 percent, according to separate people familiar with the returns.

Investors put a net $23.3 billion into hedge funds in the first five months of this year after pulling $112 billion in 2016, according to eVestment.

BlueCrest, once one of Europe’s three largest hedge funds, enjoyed rapid growth in the aftermath of the 2008 financial crisis when it outperformed competitors. Its fortunes turned amid faltering returns and investor concerns about potential conflicts of interest at an internal fund run for employees.

Platt has a net worth of $1.9 billion, according to the Bloomberg Billionaires Index.

— With assistance by Nishant Kumar, and Tom Beardsworth

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