Round Table Investment Management Company has had a very strong first quarter according to a source familiar with the matter. The fund, which specializes in Macro and Asset Recovery investments in two separate vehicles, has managed to beat its 2010 and 2011 numbers across the board and has managed a return greater than half its performance for the entire year of 2010 in the first quarter.
In the first quarter of the year the firm’s Global Macro Fund LP has returned 7.13% compared to -0.08% in 2011 and 3.63% in 2010. As the fund was not in operation in January 2010 there is an aberration in those figures. The firm returned a total of 13.03% in 2010 its first year while in 2011 it lost 10.38% of its value, a luck break by some standards.
The firm’s solid performance in the first quarter happened for many reasons. First of the half of the company’s risk budget deployed in equities, including some long held from last year, paid off when the market rallied in through the Spring. The fund concentrated on housing and capital return in the first quarter.
Housing was managed through equities by investing in financials. Those holding outperformed in the United States giving a great return to the Macro fund. Housing’s performance in the first quarter was a successful bet for many funds as the financials continued on their path toward business as usual.
Capital return was achieved by investing in the equities of companies thought likely to buy back equity and return earnings to their shareholders. The strategy was concentrated in larger businesses with healthy balance sheets and cash holdings. This sector performed as per the expectations of the fund.
Looking forward the fund sees volatility in the rates market that promises some return. The firm refrained from any big trade in the area until the end of the quarter. The fund is still cautious in approaching that particular market however.
The fund admits losses in commodities during the period as agricultural pricing did not work in favor of the firm’s strategy in that area.
Round Table was started in 2007 by Ian Banwell, the former Chief Investment Officer for Bank of America Corp. (NYSE:BAC). The Round Table Global Macro Fund was launched in February of 2010. Round Table has approximately $330 million Assets Under Management.