Former Treasurer Joe Hockey takes on advisory role for VGI Partners

The former treasurer and ambassador to Washington will become an adviser for the $3.2bn fund VGI Partners.

Former treasurer Joe Hockey will become an adviser to VGI Partners. Picture Kym Smith

Former Australian Ambassador to Washington Joe Hockey has been appointed as a special adviser on geopolitics and a member of the advisory council of $3.2bn hedge fund VGI Partners.

Although the announcement was made public Wednesday it is understood the former treasurer in the Abbott government was appointed to both roles in late-March.

VGI Partners executive chairman Robert Luciano welcomed the appointment of Mr Hockey alongside other senior figures who form the advisory council.

“We first met Joe in Washington when he was serving as Australia’s Ambassador to the USA. He did an outstanding job in that role, achieving particular success in fostering close relationships on both sides of the aisle and with President Trump,” Mr Luciano said on Wednesday.

“At VGI Partners we are always looking to add to our proprietary information networks in ways that will improve our investment decision-making. Having access to Joe’s knowledge and insights in the current geopolitical environment is a privilege and provides us with a competitive advantage”.

Mr Hockey, who previously worked in banking and law, recently co-founded the consultancy Bondi Partners out of his Pennsylvania Ave address in Washington.

Mr Hockey is looked on by many as holding strong relationships with members of the Trump administration after his four-year stint as Australian ambassador.

At the time of the launch, Mr Hockey told the media despite the challenging business environment one hedge fund had paid its fee a full year in advance.

The Australian understands VGI partners is one of Bondi Partner’s clients.

Alex Tureman, a former senior Adviser to Hockey, forms the other half of the consultancy duo.

Prior to working with Mr Hockey Mr Tureman lead Obama-era economic policies such as the Trans-Pacific Partnership and reauthorisation of the US Export-Import Bank.

He has also held leadership roles in the Democratic Senatorial Campaign Committee and US presidential campaigns.

VGI Partners, founded in 2008 by Mr Luciano, has offices in Sydney, New York, and Tokyo, and offers capital management for high net worth individuals, family offices and two VGI managed funds.

Those two funds, despite the selldown in March, managed to pull together gains of 5.8 per cent and 1.4 per cent.

Earlier this week Mr Luciano told investors he was “deeply concerned” about the outlook for equity markets even have they have “rallied hard off their March lows”.

Mr Luciano said his fund remains “very cautious” and has increased its short positions and cash weightings in recent months.

The VGI Advisory Council, which meets once a year, was due to meet in Tokyo next month before it was cancelled due to coronavirus fears.

Mr Hockey appeared as a guest of the council when it met in Washington last year.