Monday, 29 August 2016
Last updated 2 days ago
Jun 10 2011 | 12:05pm ET
Horton Point is back with a new hedge fund after shutting its maiden offering last year.
The New York-based firm's new offering shows Horton Point appears to have learned its lesson: Unlike its first fund, which debuted in 2008 and invested in a variety of liquidities, the new Gallery Algo Fund promises investors lots of liquidity—offering the chance to redeem every 15 days with just five days' notice.
As its name suggests, and like its predecessor, Gallery Algo is a quantitative vehicle. According to CEO Dimitri Sogoloff, the fund employs scores of algorithms across a wide variety of asset classes divided into four broad strategies, equities, fixed-income and rates, global macro and market-making.
"The philosophy behind Horton Point and the fund itself is that a single strategy or algorithm is not going to perform well forever," Sogoloff told Hedge Funds Review. "We are a factory that develops lots of small, uncorrelated algorithmic strategies. We fully expect that any one of these strategies may stop working so we continuously research and design new strategies and add them to the portfolio."
Some of those strategies are holdovers from Horton Point's Gallery QMS Fund. That fund, which invested in less-liquid fixed-income and reinsurance as well as using the algorithms, was shuttered due to lack of investor interest. Sogoloff's co-founder, former Citadel Investment Group head of credit quantitative research Vladimir Finkelstein, also left the firm last year.
Sogoloff formerly served as president and chief risk officer of relative value hedge fund Alexandra Investment Management, which he co-founded.
Deutsche Bank and Newedge are the new hedge fund's prime brokers.
"The individual algorithms we have may not be particularly compelling on a standalone basis," Sogoloff explains. "But together, they are a very interesting source of alpha which is completely uncorrelated to the markets at large."