Element Posts Worst-Ever Year, Falls About 3% in January

(Bloomberg) -- Jeffrey Talpins's Element Capital Management posted its worst-ever year in 2021 and also fell about 2.7% in January, a month when most other macro managers made money.

The fund slid about 9% in 2021, according to people familiar with the matter, marking the first year Element has lost money since it started in 2005. The firm, which managed $15 billion as of October, was among those that struggled in last year's tumultuous Treasury markets. 

Meanwhile, Paul Tudor Jones's macro hedge fund gained about 1.5% in January after returning 6% last year, people said. Tudor Investment Corp. manages about $12 billion, of which about $8 billion is in the firm's flagship BVI macro strategy.

Macro funds outperformed other strategies during last month's market swings. Those that trade around Treasury markets and made money likely wagered on an increase in short-term U.S. rates amid expectations that the Federal Reserve would be more aggressive in its tightening. Short-dated Treasury yields, which climbed early in the month, rocketed even higher in late January.

Read more: Macro Funds Top Peers in January After Years of Struggle

Stock-pickers struggled the most last month, particularly those with exposure to tech stocks, which were hard hit. The tech-heavy Nasdaq Composite Index plunged 9% in January, while the S&P 500 slid 5.3%.

Representatives for the firm declined to comment.

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