Pharo Management To Return Macro Fund's First Half Profits To Clients

Jul 19 2017 | 9:13pm ET

Guillaume Fonkenell’s Pharo Management will return some capital to investors in its $5 billion macro fund after turning in strong performance that has brought the vehicle’s AUM beyond peak capacity.

The Pharo Macro fund gained approximately 12% in the first six months of year and will return those profits to investors at the start of September, according to a Bloomberg article citing an email from Fonkenell. Closed to new capital three years ago, the fund’s capacity is reportedly $4 billion to $5 billion in assets under management. 

Fonkenell’s outlook for macro strategies is positive, according to the article. “The opportunity set in macro emerging-market strategies continues to be unusually attractive,” Fonkenell said to Bloomberg. “Fundamentals paint a very diverse macro picture across countries. Central banks are very active. Markets are vibrant and volatile. We expect this environment to persist for a while.”

Meanwhile, Pharo’s smaller Gaia Fund, which manages about $2.7 billion was up 16.6% in the first half, will reportedly accept $1 billion in fresh capital in the fall. 

Founded in 2000 by Fonkenell, Pharo Management is a global manager specializing in emerging markets. The company manages $8.2 billion in assets for a wide range of large financial institutions, pension funds, fund-of-hedge-funds, family offices, endowments, foundations and sovereign wealth funds.

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