Macro Trading's Big Year Has a Familiar Winner in Louis Bacon

Louis Bacon’s main fund at Moore Capital Management gained 23% last year. This performance marked a return to form for the macro trading legend after a period of reduced activity. Bacon had returned most of his clients’ cash in 2019 and signaled he would step back from daily operations.

Bacon, 69, remains a key contributor to Moore Capital’s overall performance. The firm reported he was the single largest contributor to earnings in 2025. Despite stepping back, his influence continued to shape the firm's strategy.

Macro hedge funds, including those run by Bridgewater Associates and D.E. Shaw & Co., posted double-digit gains in 2025. These returns were driven by surging US stocks, precious metals, and volatility in bonds and currencies.

Why Did This Happen?

Moore Capital’s gains were likely influenced by broader market trends during 2025. Trump’s trade wars and policy shifts created volatility in markets, which macro traders like Bacon could exploit. The firm’s diverse portfolio across macro, equities, credit, and relative value strategies helped buffer against sector-specific risks.

The firm’s strategy appears to have benefited from market dynamics tied to US stock rallies and fluctuating bond and currency markets. These movements were amplified by Trump’s trade policies and global macroeconomic shifts.

How Did the Firm Adapt?

Moore Capital has adapted by streamlining its operations and appointing new leadership. Kevin McNamara was named co-chief investment officer alongside Bacon, helping to distribute the firm’s management responsibilities.

Bacon’s decision to consolidate his funds into a single internal strategy was a strategic shift. This move allowed the firm to focus on managing internal capital rather than external investor funds. It also signaled a more hands-off role for Bacon, who had previously played a central role in daily decision-making.

The firm now runs a single liquid market strategy focused on internal capital, along with a structured credit strategy with external backing. This restructuring aimed to simplify operations while maintaining performance.

What Are Analysts Watching Next?

Investors are watching how Moore Capital will perform in 2026, especially as global markets face new uncertainties. Bacon’s reduced involvement may affect the firm’s ability to adapt quickly to shifting market conditions.

The firm’s performance in the coming year will depend on its ability to maintain returns despite a less active role from Bacon. The new leadership structure, including Kevin McNamara, will be a key factor in determining the firm’s trajectory.

Macro traders are also keeping a close eye on broader economic indicators, including inflation, interest rates, and global trade dynamics. These factors will shape the opportunities and risks for macro hedge funds in the year ahead.