Key Takeaways
- • Colin Teichholtz, former head of fixed income at BlueMountain Capital, is joining Element Capital as head of markets—a newly created senior portfolio role—effective November 2019.
- • Element Capital has grown to $18 billion in assets under management, more than doubling from $8 billion three years prior, and generated approximately 20 percent average annual returns since its 2005 founding in its flagship global macro fund.
- • Element's flagship fund returned 8 percent year-to-date through September 2019, outperforming the broader macro hedge fund average of 6.46 percent, and delivered 17 percent returns in 2018, demonstrating consistent outperformance in a challenging macro environment.
- • Teichholtz brings 20+ years of fixed-income and macro trading expertise, including prior roles as partner at Pine River Capital, co-head of interest rates at Morgan Stanley, and serves on the U.S. Treasury's Office of Financial Research Advisory Committee.
- • At Element, Teichholtz will research macro investment strategies and policy developments as part of founder Jeffrey Talpins' "modern macro" approach, which integrates fundamental, systemic, and relative value macro analysis.
Summary
Element Capital Management has hired Colin Teichholtz, the former fixed-income head at BlueMountain Capital, as head of markets in a newly created senior portfolio position, effective November 2019. Teichholtz will be based in New York and report directly to founder Jeffrey Talpins, focusing on macro investment strategy research and policy analysis as a key member of the firm's portfolio management team. The hire reflects Element's continued build-out of investment talent as the firm has achieved exceptional scale and performance in global macro strategies.
The appointment underscores Element's momentum in a traditionally challenging environment for macro hedge funds. The firm now manages $18 billion in assets, more than doubling from $8 billion just three years ago. Element's flagship fund has generated approximately 20 percent average annual returns since inception in 2005, with 2019 performance reaching 8 percent through September—a notable outperformance against the HFR-tracked macro hedge fund average of 6.46 percent. The fund returned over 17 percent in 2018. This track record is particularly significant given that traditional macro strategies have underperformed in recent years due to quantitative easing, compressed volatility, and structural shifts in markets.
Teichholtz brings substantial credential and experience to the role. At BlueMountain, he led teams trading developed market interest rate products. Prior to that, he was a partner at Pine River Capital, where he co-managed multiple fixed-income funds. His earlier career included roles as co-head of interest rates and head trader for agency mortgage-backed securities at Morgan Stanley. He serves as a member of the Office of Financial Research Advisory Committee at the U.S. Treasury, reflecting his standing in financial policy circles.
Element Capital positions itself as a practitioner of "modern macro," incorporating fundamental, systemic, and relative value macro analysis to construct positions. Teichholtz's expertise in fixed-income trading and macro policy will complement this integrated research and portfolio framework under Talpins' leadership.
The appointment underscores Element's momentum in a traditionally challenging environment for macro hedge funds. The firm now manages $18 billion in assets, more than doubling from $8 billion just three years ago. Element's flagship fund has generated approximately 20 percent average annual returns since inception in 2005, with 2019 performance reaching 8 percent through September—a notable outperformance against the HFR-tracked macro hedge fund average of 6.46 percent. The fund returned over 17 percent in 2018. This track record is particularly significant given that traditional macro strategies have underperformed in recent years due to quantitative easing, compressed volatility, and structural shifts in markets.
Teichholtz brings substantial credential and experience to the role. At BlueMountain, he led teams trading developed market interest rate products. Prior to that, he was a partner at Pine River Capital, where he co-managed multiple fixed-income funds. His earlier career included roles as co-head of interest rates and head trader for agency mortgage-backed securities at Morgan Stanley. He serves as a member of the Office of Financial Research Advisory Committee at the U.S. Treasury, reflecting his standing in financial policy circles.
Element Capital positions itself as a practitioner of "modern macro," incorporating fundamental, systemic, and relative value macro analysis to construct positions. Teichholtz's expertise in fixed-income trading and macro policy will complement this integrated research and portfolio framework under Talpins' leadership.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.