HBK Capital Management oversees its own private investment funds and provides sophisticated investors with access to these funds. With headquarters in Dallas, HBK Capital also has offices in New York City, Charlottesville and London. It currently oversees more than $29 million in assets under management (AUM).
The firm is not a traditional financial advisory firm that offers general financial planning services to most individuals. If you’re seeking that type of advisor, you can use our SmartAsset financial advisor matching tool to find one in your area.
HBK Capital Management Background
Founded in 1991, HBK Capital (Also known as HBK Investments) provides administrative and investment management services to its own funds. The firm provides access to these funds only to sophisticated investors with substantial resources.
Headquartered in Dallas, HBK Capital has about 250 total employees working out of four offices. HBK Partners II L.P. is the primary owner.
What Types of Clients Does HBK Capital Management Accept?
HBK Capital’s clients are actually the private funds it runs. These funds, in turn, accept ultra-high-net-worth investors. The firm states, “We do not currently provide advisory services to non-fund clients.”
HBK Capital Management Minimum Account Size
HBK Capital does not set an account minimum, but it notes that only investors with “substantial resources” have access to its private funds. These funds are exempt from registration under Section 3(c)(7) of the Investment Company Act of 1940.
Services Offered by HBK Capital Management
The firm’s only business is to provide administrative and discretionary investment advice to its own private funds. In doing so, it aims to reap superior risk-adjusted returns with little correlation to most indices. In other words, these funds are actively managed. The firm seeks to beat major market indices rather than closely mimic their performance. HBK Investments places no limits on what types of securities these diversified funds may invest in.
The firm currently manages the following pooled funds:
- Multi-Strategy Funds
- Qualitative-Strategy (QS) Funds
- Merger Strategies Funds
- Investment Philosophy
In managing its funds, HBK Capital may engage in both long- and short-term positions in an unlimited range of securities, derivatives and other financial instruments worldwide. These may include:
- Fixed income
- Loan participations
- Mortgage-backed and other asset-backed securities
- Forward contracts
When building portfolios, the firm generally seeks securities and financial instruments from the following business or investment strategy categories:
Emerging markets - includes corporate debt, sovereign debt, equities, currencies, derivatives and structured products from countries other than the most highly-rated nations
Event-driven equities - invests in the securities of companies involved in major transactions such as mergers, acquisitions exchange offers and more. The firm’s goal generally is profiting from the successful completion of these transactions by purchasing securities at a discount to the value it’s expected to realize if the transaction completes.
Corporate credit - involves the securities of corporate issuers in developed markets, primarily in North America and Europe. These may include include investment-grade, high-yield and distressed bonds; par and distressed loans; bankruptcy-related claims; and more.
Structured credit - invests in asset-backed securities such as residential and commercial mortgage-backed securities, collateralized debt obligations, structured notes and more.
Quantitative strategies - invests in various securities “in an attempt to take advantage of shorter-term and longer-term statistical phenomena,” the firm states in its Form ADV brochure. It typically invests in these instruments by utilizing a computer trading system. It groups these securities into four categories: U.S. equity; European equity; Japanese equity; futures, currencies and other.
Volatility - focuses on correlation trades and relative volatility trades based on the expected volatility of individual equity securities, commodities, currencies, rate products and indices.
Developed markets fixed income - invests in sovereign debt securities, municipal bonds and currencies primarily in G-7 nations. The firm either directly invests in these or gains exposure through derivatives such as interest rate swaps, options and repurchase agreements.
Please note, however, that the firm doesn’t restrict itself to these strategies. It may alter these or adopt new ones.
In evaluating these securities, the firm may utilize various research strategies such as fundamental, technical and quantitative analysis. These strategies may involve forecasting market and securities trends by analyzing available data such as the financial documents of companies and market research from reputable sources.
Fees Under HBK Capital Management
HBK Capital charges its funds monthly management fees. It also receives annual incentive fees based on the performance of these funds. In addition, the firm is generally reimbursed for fund expenses. These expenses may include fees and expenses payable to a fund’s administrator and its advisory committee if applicable as well as trading-related expenses such as broker’s commissions. (The firm does not publish its fee schedule.
What to Watch Out For
HBK Capital’s entire business revolves around the management of its funds. While it opens these funds to a very exclusive set of investors, it does not currently provide investment advisory services directly to individuals. So if a personal financial advisor is what you’re seeking, you may want to look elsewhere.
HBK Capital had no legal or disciplinary events in the past 10 years to disclose as of the time of this writing.
Opening an Account With HBK Capital Management
To contact HBK Capital, call the firm at (214) 758-6108 or visit its website, http://www.hbk.com.
Where Is HBK Capital Management Located?
HBK Capital’s headquarters are located at:
2300 North Field Street, Suite 2200
Dallas, Texas 75201
All information was accurate as of the writing of this article.
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