Company Overview:
Caxton Associates, founded in 1983, is a global trading and investment firm with offices in London, New York, Singapore, Monaco, Dubai and Bengaluru. Caxton Associates’ primary business is to manage client and proprietary capital through multiple liquid global hedge fund disciplines. Our broad mandate allows us to trade across global markets and instruments, with a strong focus on alpha generation for our clients.
Requirements
The Role:
Caxton Associates is seeking experienced Portfolio Managers specialising in US natural gas and/or US power markets, with an understanding of their interdependence.
In this role, you will be responsible for managing a significant capital allocation, implementing rigorous risk management, and contributing to our collaborative, research-driven environment. Within our organization, we place a high value on collaboration, promoting regular and ongoing discussions about global macroeconomic trends, geopolitical developments, and the evolution of financial markets. We seek out professionals who can generate unique insights within their investment universe, contribute to the firm’s broader strategic outlook, and leverage collective knowledge to generate alpha.
Key Responsibilities:
- Independently manage a significant capital allocation by creating, executing and monitoring an alpha-driven investment strategy informed by differentiated commodity-market views.
- Construct portfolios targeting asymmetric returns and limited correlation to traditional capital markets, translating fundamental research into appropriate instruments, spreads and risk exposures.
- Implement robust risk management, continuously assessing positions, investment theses, downside scenarios and exit criteria.
- Collaborate effectively across the global investment team, communicating evidence, assumptions and changes in market views.
- Ensure strict compliance with applicable regulations and internal risk controls.
- For natural gas strategies, build regional and national balances covering production, pipeline and cross-border flows, storage, LNG feedgas and demand; model weather-sensitive demand, power burn and fuel switching.
- For power strategies, forecast load, renewable generation, outages, available capacity and the generation stack; analyse ISO/RTO price formation, congestion, transmission, scarcity and relevant energy/ancillary-service interactions.
- Assess gas infrastructure, maintenance, storage deliverability, regional basis and gas-to-power linkages; translate research into Henry Hub, basis, calendar, hub, locational, seasonal or peak/off-peak exposures as appropriate, accounting for contract characteristics and liquidity.
Requirements:
- Proven portfolio-management track record, strong investment acumen and a Sharpe Ratio greater than 1.5.
- A minimum of 5 years of experience managing capital, preferably within a hedge fund or trading house.
- Ability to thrive in a collaborative global team, with the highest standards of ethics and integrity and sound decisions under pressure.
- Deep expertise in US natural gas or power markets, including relevant infrastructure, pricing mechanisms, traded instruments and the interaction between gas and power.
- Ability to independently build and validate gas-balance or power-price models and evaluate weather, infrastructure and generation scenarios with clear trading implications.
- Hands-on quantitative capability in Python or an equivalent language and strong spreadsheet modelling; ability to source, clean, test and explain data, assumptions and model limitations.
- Practical understanding of liquidity, positioning, execution costs, risk limits and the circumstances that would invalidate an investment thesis.
Application Instructions:
To apply, please submit:
- Your CV.
- A detailed account of your investment track record (including evidence of a Sharpe Ratio greater than 1.5).
- A comprehensive outline of your proposed investment strategy and process.
- Describe a gas-balance or power-price model personally built or materially improved, and a weather, infrastructure or generation event that changed the forecast, trade expression, timing and risk scenarios.
- Two concise trade recommendations specifying view, perceived mispricing, instrument, catalyst, entry and exit conditions, risks and outcome or assessment plan.
- A summary of independently used quantitative tools and the data subscriptions, services and resources required to execute your business plan.
If you're an experienced portfolio manager passionate about collaboration and financial markets, we'd love to connect with you.
Benefits
With respect to New York-based applicants, the base pay for this role is $250,000 annually. The total compensation is dependent upon several factors, including, but not limited to, relevant experience, business needs and market demands. This role may also be eligible for bonus compensation and employee benefits.