The fund is almost always closed to new investments in order to remain an optimal size. The last time the fund opened to new capital was in mid-2018. It attracted $3 billion, mostly from existing clients, in just one month.[10]
In December 2018 The Wall Street Journal reported the fund had quietly become a “heavyweight,” managing $50 billion+.[11]
In January 2020, in order to continue prioritizing performance over asset-gathering, the fund proactively reduced its AUM by 20%.[12]
In early 2021, Element Capital returned about $2 billion of 2020 profits to its clients in order to maintain control of the growth of the fund, focusing on performance rather than accumulating assets.[13]
In 2024, Element Capital returned more than $6 billion to investors, shrinking its asset base and moving closer to managing mostly internal capital. This move is part of Element’s strategy to reduce the number of outside investors. The firm has shifted toward managing a smaller asset base with the goal of generating higher returns, following three consecutive years of losses that saw the fund lose about 20% between 2021 and 2023. The fund delivered a return of 22.5% in 2024.[14]
Investment strategy
The fund uses a global macroeconomic strategy, trading based on political and economic trends, rather than the fundamental analysis of individual companies. Talpins uses options to try to capture growth from strategies aimed at predicting global economic shifts while also limiting potential losses from those strategies.[15]
Performance
Since launching in 2005 the fund averaged 21% annual returns, as of March 2019, with no down years.[16][17] During the global financial crises of 2008, the fund returned 35%, and in 2009 it gained 79%.[18]
Key people
Jeffrey Talpins is the founder of Element and its chief investment officer since the fund launched in April 2005.[19]
In 2012, Adam Prestandrea joined Element Capital, stepping down as co-head of investments at Arpad Busson’s EIM SA.[20]
In October 2019, the company hired Colin Teichholtz, former Blue Mountain Capital fixed-income head, to research macro investment strategies and policy developments as part of the portfolio team.[21]
