Key Takeaways
- • TT International, a London-based hedge fund founded in 1988, reported sharp increases in profits and member withdrawals, benefiting from Brexit-related market positions and equity volatility.
- • The firm paid an average of £274,000 per employee across its 105-person staff in 2023, with senior portfolio managers receiving additional partnership distributions; total staff compensation (wages, salaries, bonuses, pensions, and social security) consumed £33m of the firm's £45m in revenues.
- • Assets under management declined from $8.6bn in 2022 to $6.7bn in 2023 due to net client outflows following the retirement of founding portfolio managers in the midcap team, now led by new manager Jack Miller since January 2024.
- • Despite generous compensation packages and employee benefits (including financial wellness programs and team-building events), TT International reported a £3.7m loss in 2023 compared to a £6.7m profit in 2022, as staff costs exceeded 70% of revenues.
- • TT International evolved from its macro hedge fund origins into a diversified cross-asset manager offering long-only and long/short strategies across global markets.
Summary
TT International, a London-based asset manager established in 1988, has demonstrated strong profitability despite recent headwinds, with profits and member withdrawals rising sharply as the firm capitalized on market dislocations including Brexit-related opportunities in European equities. The firm, founded by former Fidelity investment director Tim Tacchi, has grown into one of the UK's better-capitalized hedge fund operations, though it maintains a lower public profile than larger peers such as Brevan Howard, Marshall Wace, and TCI Fund Management.
The firm's compensation structure reflects its success in attracting and retaining investment talent. TT International paid an average of £274,000 per employee in 2023 across its 105-person workforce, with senior portfolio managers receiving additional distributions as members of the partnership structure. Total staff costs—including wages, salaries, bonuses, pensions, and social security contributions—amounted to £33m against revenues of £45m, representing over 70% of gross income. Beyond salary, the firm introduced employee financial wellness initiatives including Octopus Money, designed to assist staff with cost-of-living pressures, and organized team-building activities.
However, the firm faced significant challenges in 2023. Assets under management contracted from $8.6bn in 2022 to $6.7bn, driven by net client outflows following the departure of founding portfolio managers from its midcap equity team. The midcap operation, now led by Jack Miller since January 2024, experienced notable redemptions. This asset contraction, combined with elevated staffing costs, resulted in a £3.7m loss in 2023, a sharp reversal from the £6.7m profit recorded in 2022.
TT International's business model has evolved considerably since its inception as a macro hedge fund. The firm now operates as a diversified cross-asset manager offering both long-only and long/short investment strategies across global markets, serving institutional clients. The organization was acquired by SMBC in 2020, with retention payments to key staff continuing through 2023, adding to the compensation burden during a period of asset base contraction.
The firm's compensation structure reflects its success in attracting and retaining investment talent. TT International paid an average of £274,000 per employee in 2023 across its 105-person workforce, with senior portfolio managers receiving additional distributions as members of the partnership structure. Total staff costs—including wages, salaries, bonuses, pensions, and social security contributions—amounted to £33m against revenues of £45m, representing over 70% of gross income. Beyond salary, the firm introduced employee financial wellness initiatives including Octopus Money, designed to assist staff with cost-of-living pressures, and organized team-building activities.
However, the firm faced significant challenges in 2023. Assets under management contracted from $8.6bn in 2022 to $6.7bn, driven by net client outflows following the departure of founding portfolio managers from its midcap equity team. The midcap operation, now led by Jack Miller since January 2024, experienced notable redemptions. This asset contraction, combined with elevated staffing costs, resulted in a £3.7m loss in 2023, a sharp reversal from the £6.7m profit recorded in 2022.
TT International's business model has evolved considerably since its inception as a macro hedge fund. The firm now operates as a diversified cross-asset manager offering both long-only and long/short investment strategies across global markets, serving institutional clients. The organization was acquired by SMBC in 2020, with retention payments to key staff continuing through 2023, adding to the compensation burden during a period of asset base contraction.
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