New Programs Help AHL Cut Risk, Boost Returns

Nov 12 2010 | 2:17am ET

The Man Group’s flagship AHL program has engineered a major turnaround this year. And, as befits a quantitative trading system, it did so with new computer programs.

After AHL lost 16% last year, Man introduced the new programs, which have helped it deal with the year’s volatile markets. The new systems limit the fund’s losses during down markets by keeping AHL from following down trends that prove not to be trends at all.

“We’ve increased the diversification of trading models, which has made returns more stable,” AHL CEO Tim Wong told Reuters. “Maybe so of the downward movements would have been sharper” prior to the new programs’ introduction in December.

Instead, AHL has managed a 15% return this year.

Wong said the new programs had been in the works for several years prior to their being put into production late last year.


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