Pierre Schroeder, formerly head of proprietary trading and debt finance at Société Générale, has started a macro fund capital from his former employer, according to Alternative Investment News, a CIN sister publication. SocGen's asset management arm, SG Asset Management, has invested $100 million in Square Investment Management, which will be a global macro fund investing across a range of asset classes including fixed-income, foreign exchange, commodities and equities and trades globally, including in emerging markets.
SG Asset Management has invested via a managed account with a five-year lockup. In exchange, it owns 20% of the management company with Schroeder retaining an 80% stake, said Severine Arnaud, head of investor relations and marketing at London-based Square.
Square manages a total of roughly $200 million, with capacity for $800 million more. Its goal is to reach $500 million in six months, said Arnaud. The offshore fund has a minimum investment of $5 million and carries a 2% management fee and 20% performance fee. A one-year soft lockup provision provides for a 5% penalty for investors redeeming within one year.
Schroeder left SocGen in 2003 with an eye on starting his own firm. He initially traded his own account while awaiting approval from the Financial Services Authority. Schroeder also left SocGen because he grew tired of a management role and wanted to spend more time trading, explained Arnaud.