Commodities - Hedge Funds | Bruce Kovner and Caxton Associates

While it wouldn't be completely accurate to describe Bruce Kovner and Caxton Associates as a commodity hedge fund, it's close enough to make it appropriate.

In reality, what Caxton Associates is is a trend fund, or macro fund, where they look for anything in any sector in any location in the world to invest in. That's why Caxton Associates have been so good at wealth management, and great investment managers and money managers.

So more accurately, they not only invest in commodities, but in whatever sector, like bonds, currencies, debt or equities where there is an opportunity to cash in on significant movements.

After a season of time of finding what it was he wanted to do professionally, Bruce Kovner decided on trading for a living, where he initially borrowed $3,000 against his MasterCard and started trading in soybean futures contracts. He learned a good lesson from the start, as he didn't hedge that first trade, which helped him in the future learn to manage risk properly. The contract went as high as $40,000, before leveling off at $23,000 before he sold.

Kovner eventually ended up at Commodities Corporation which later became a part of Goldman Sachs, where he earned his bones, along with respect; racking up millions in profits for clients and Commodities Corporation. That success led Kovner to launch his own company - Caxton Associates, in 1983.

While there is no sure way of proving it, its supposedly among the top ten largest hedge funds in the world at this time.

Over a period of 10 years Bruce Kovner provided an extraordinary 87% annual return for his investors, on a compound basis, truly making him and Caxton Associates among the leading market wizards.

Caxton Associates is registered as a Delaware limited liability company and also is registered as an Investment Adviser with the U.S. Securities and Exchange Commission. The company is also registered pursuant to the Commodity Exchange Act, as amended, as a commodity pool operator and commodity trading advisor and is a member of the National Futures Association as a CPO and a CTA.

Interestingly, Kovner isn't like a lot of money managers and businessmen who love to enter the limelight, probably marketing themselves than really marketing the company. In the case of Kovner though, his professional and private lack of publicity is the way he like it, yet he is a powerful mover and shaker behind the scenes in the many things he appreciates and believes in.

So there you have it. One of the most successful, powerful, and wealthy men in the world that you never knew, and he likes to keep it that way.

Those who have enlisted Bruce Kovner and Caxton Associates for wealth management know who he and the company are, and as participants in one of the top hedge funds in the world, get to enjoy the profitability ride with their money and investment manager.

Investors would do a lot worse than allowing the trading strategies of Bruce Kovner and Caxton Associates guide their economic futures. They're all laughing all the way to the bank, as these money managers put a smile on all their faces.