Key Takeaways
- • Colin Teichholtz, former fixed-income head at BlueMountain Capital, joins Element Capital in November 2019 as head of markets, a newly created senior portfolio role focused on macro research and policy analysis.
- • Element Capital has grown to $18 billion in assets under management, up from $8 billion three years prior, and generated approximately 20 percent average annual returns since its 2005 inception—outperforming the broader macro hedge fund category significantly year-to-date (up 8 percent through September vs. 6.46 percent HFR average).
- • Teichholtz brings deep fixed-income expertise from senior roles at BlueMountain, Pine River Capital, and Morgan Stanley, plus advisory credentials as a member of the U.S. Treasury's Office of Financial Research Advisory Committee.
- • Element employs a "modern macro" strategy combining fundamental, systemic, and relative value analysis, positioning itself as a leader in global macro hedge funds during a period when traditional macro strategies have underperformed due to quantitative easing, reduced volatility, and structural market shifts.
Summary
Element Capital Management has hired Colin Teichholtz, the former head of fixed-income at BlueMountain Capital, as head of markets, a newly created position within the firm. Teichholtz will assume the role in November 2019 and be based in New York, where he will serve as a senior member of Element's portfolio team reporting to founder Jeffrey Talpins. In this capacity, Teichholtz will research macro investment strategies and policy developments while collaborating with Talpins and other senior investment professionals.
The hire underscores Element Capital's expansion trajectory and strategic focus on reinforcing its macro investing capabilities. The firm has grown substantially over the past three years, expanding from $8 billion to $18 billion in assets under management. Since its founding in 2005, Element's flagship discretionary global macro fund has generated average annual gains of approximately 20 percent. Through September 2019, the fund was up 8 percent for the year, meaningfully outpacing the broader macro hedge fund category, which returned 6.46 percent according to HFR data, and delivered returns exceeding 17 percent in 2018.
Teichholtz's background positions him to contribute immediately to Element's investment strategy. At BlueMountain, he managed teams trading developed market interest rate products. Prior to that role, he served as a partner at Pine River Capital where he co-managed several fixed-income funds. His earlier career included tenures as co-head of interest rates and head trader for agency mortgage-backed securities at Morgan Stanley. Additionally, Teichholtz serves on the Office of Financial Research Advisory Committee at the U.S. Treasury, reflecting his standing in the fixed-income policy landscape.
Element Capital's approach to macro investing, which the firm characterizes as "modern macro," incorporates fundamental analysis, systemic analysis, and relative value techniques to construct its positions. This methodological diversity reflects the firm's adaptation to market conditions that have challenged traditional macro hedge fund strategies. The global macro category has faced headwinds in recent years as quantitative easing, compressed market volatility, and structural changes have reduced the efficacy of conventional macro trading approaches. Element's consistent outperformance and asset growth suggest its strategy framework has proven more resilient than peers in this challenging environment.
The hire underscores Element Capital's expansion trajectory and strategic focus on reinforcing its macro investing capabilities. The firm has grown substantially over the past three years, expanding from $8 billion to $18 billion in assets under management. Since its founding in 2005, Element's flagship discretionary global macro fund has generated average annual gains of approximately 20 percent. Through September 2019, the fund was up 8 percent for the year, meaningfully outpacing the broader macro hedge fund category, which returned 6.46 percent according to HFR data, and delivered returns exceeding 17 percent in 2018.
Teichholtz's background positions him to contribute immediately to Element's investment strategy. At BlueMountain, he managed teams trading developed market interest rate products. Prior to that role, he served as a partner at Pine River Capital where he co-managed several fixed-income funds. His earlier career included tenures as co-head of interest rates and head trader for agency mortgage-backed securities at Morgan Stanley. Additionally, Teichholtz serves on the Office of Financial Research Advisory Committee at the U.S. Treasury, reflecting his standing in the fixed-income policy landscape.
Element Capital's approach to macro investing, which the firm characterizes as "modern macro," incorporates fundamental analysis, systemic analysis, and relative value techniques to construct its positions. This methodological diversity reflects the firm's adaptation to market conditions that have challenged traditional macro hedge fund strategies. The global macro category has faced headwinds in recent years as quantitative easing, compressed market volatility, and structural changes have reduced the efficacy of conventional macro trading approaches. Element's consistent outperformance and asset growth suggest its strategy framework has proven more resilient than peers in this challenging environment.
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