Capula assigns $450M mandate to Cinctive via SMA

Capula Investment Management has allocated about $450 million to Cinctive Capital Management through a separately managed account. Under the arrangement, Cinctive will manage the capital on Capula’s behalf while Capula retains risk controls and reporting oversight.

A separately managed account places investment responsibility with an external manager while the hiring firm maintains compliance, risk limits and reporting. The structure allows Capula to assign capital to an outside manager without transferring oversight functions.

Capula manages roughly $35 billion in assets. The firm was founded in 2005 by Yan Huo after his role building JPMorgan’s proprietary fixed-income trading desk and is known for relative-value strategies across fixed income, currencies and related macro instruments. Capula has increased its multi-strategy activity in recent years, added senior hires from other multi-manager platforms and has made multiple external allocations as part of its portfolio construction.

Cinctive Capital Management was founded in 2019 by Richard Schimel and Lawrence Sapanski and launched with about $1 billion in assets under management. The firm initially focused on equities and later expanded into macro and quantitative approaches. In 2024 Cinctive consolidated its equity and macro investments into a single flagship fund. Through April of this year Cinctive reported gains of about 5%.

Large multi-strategy firms have been allocating portions of their assets to outside managers to expand capacity and access specialist skills. External mandates can allow firms to test strategies or scale exposure more quickly than building new internal teams.

For Cinctive, the $450 million mandate provides a sizable inflow to support its integrated flagship strategy following recent restructuring and stabilization of performance.