Horton Point Launches Quant. Fund With 'Scores' Of Algorithms

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."


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.