Two Sigma raised $3.3 billion for a macro hedge fund in one the largest new pools of such capital raised since the 2008 financial crisis.
Investors sought out the fund, which can bet on macroeconomic trends by investing in equities, fixed income, commodities and currencies, because it seeks to generate returns not tied to the market, said Nobel Gulati, CEO at Two Sigma Advisers, the part of the New York-based firm that manages money for pension funds, sovereign wealth funds and other institutional clients.
The firm oversees $23 billion and has been one of the most successful managers that uses quantitative strategies to drive investments.
Perrin Wheeler, a spokeswoman for Two Sigma, declined to comment on the firm's performance.
The firm gathered the money as investors pulled $20.7 billion from macro and quant-driven strategies this year, according to data from Hedge Fund Research, as a lack of volatility in financial markets stunted performance. In the third quarter, investors withdrew $11.1 billion from such funds.
The new Two Sigma fund, which started July 1 with almost $2 billion, uses the same models as the $5 billion Two Sigma Compass strategy, said a person with knowledge of the matter, but will hold investments for twice as long. Geoffrey Duncombe, who joined Two Sigma in 2008, is the money manager for the new fund.