Kovner quits Caxton after 30 years

Bruce Kovner, the billionaire co-founder of the $10bn hedge fund Caxton Associates, has resigned as chief executive of the firm after almost three decades at the helm.

Mr Kovner, 66, will be succeeded as chairman and chief executive of Caxton – one of the world’s oldest and most successful hedge funds – by the firm’s current chief investment officer, Andrew Law.

Mr Kovner ranks among the likes of George Soros, John Paulson and Paul Tudor Jones as one of the most successful traders in modern history, having made Caxton’s clients more than $12bn over the course of his career.

He announced his retirement in a letter sent to investors on Tuesday, a copy of which was obtained by the Financial Times.

A separate letter from Mr Law, a former top Goldman Sachs trader, also announced that Caxton would be “soft closing” to new client money.

“After 34 years in the trading business and more than 28 years leading Caxton, the time has come to hand the leadership of the company to a new generation,” Mr Kovner wrote.

“I do so knowing that I will miss the adrenalin rush of confronting markets every day but also confident that the new leadership will carry on the traditions, style and substance of Caxton’s successful history.”

A spokesperson for Caxton declined to comment.

Mr Kovner is the latest in a string of high-profile fund managers to step out of the hedge fund business.

Mr Soros announced his Quantum fund was closing to outside investors in July, while Stanley Druckenmiller announced the liquidation of his firm Duquesne Capital last year.

Mr Kovner’s departure from Caxton, which trades across asset classes to profit from shifts in the global economy, had already been well telegraphed, however.

He stepped down from the day-to-day running of Caxton’s hedge fund portfolios in 2008, allowing Mr Law to take over as chief investment officer.

Mr Law will fully take over at the beginning of next year. Mr Kovner will retain a minority stake.

Mr Law, who is based in Caxton’s large London office, said he could think of “no higher honour” than to take over from Mr Kovner.

He will “continue to focus on trading” he told clients, announcing the formation of a new operating committee to run Caxton’s day-to-day business.

Over its lifetime, Caxton has returned investors an average of 21 per cent annually. There was only one losing year – 1994 – when the company’s main fund dropped 2.5 per cent.

An investment of $1,000 in Caxton made when the firm began trading in 1983 would today be worth $168,000.