Dan Loeb.Reuters / Steve Markus
Some of the biggest names in the investing world are backing a hot new hedge fund, according to people familiar with the situation.
Philippe Laffont, the founder of Coatue Management; Louis Bacon, the founder of Moore Capital; and Dan Loeb, the founder of Third Point, are planning to invest in Ben Melkman’s Light Sky Macro, a New York hedge fund that is set to launch March 1.
Billionaire Steve Cohen, the founder of Point72 Asset Management, is also investing in the fund.
These are some of the biggest names in the hedge fund industry managing some of the largest funds. As of midyear 2016, Coatue managed $10.2 billion in hedge fund assets, Third Point managed $14.9 billion, and Moore managed $15 billion, according to the Hedge Fund Intelligence Billion Dollar Club ranking.
Cohen, whose firm SAC Advisors was banned from the industry after an insider-trading scandal, is well respected among hedge funders for his investing prowess. He now manages his fortune via his family office, Point72.
Melkman previously was a partner at Brevan Howard Asset Management, a Europe-based hedge fund titan that has been losing assets. Melkman’s fund launch is expected to be one of this year’s largest and will employ a macro strategy.
The fund is marketing a fee structure that lowers fees as assets rise. For instance, the fund’s management fee starts at 1.5% and decreases to 1.25% when assets reach $1 billion and then to 1% if assets hit $2 billion, according to a person familiar with the situation who declined to be named.
Melkman did not return calls seeking comment in time for publication. Representatives for Loeb and Bacon declined to comment.
The fund is expected to launch with at least $400 million.
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