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HBK Investments Review

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HBK Investments

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: 

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. 

Disclosures

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.

Tips on Finding the Right Financial Advisor

  • Not a person with substantial assets to invest? There are plenty of other professionals who can help you. To find one near you, use our financial advisor matching tool to get connected with up to three local advisors. We’ve vetted each one on our platform. But our tool also provides you with their profiles, so you can compare their qualifications before you choose one.
  • Ask questions. One crucial one: how do you get paid? Some advisors will only accept fees from their clients, while others also receive compensation in the form of commissions from third parties. It’s important to know what your advisor does, so you can be aware of potential conflicts of interest. It's important to know the difference between fee-only and fee-based advisors. 

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research