Wednesday, 29 June 2016
Last updated 2 hours ago
Jun 6 2007 | 9:01am ET
Fairfield, Conn.-based John W. Bennett & Co. this month launched an e-mini Standard & Poor’s 500 trading program with $1 million in seed capital provided by Topwater Capital, a fund of hedge funds focusing on smaller funds. The fund, though currently small, has a very big goal: 50% annualized returns.
The S&P 500 Emini Trading program generates its alpha through systematic short-term trading of e-mini futures contracts that produces consistent and predictable results from quarter to quarter, founder John Bennett said. The program is aiming for returns of 50% per year, according to disclosure documents, with a maximum drawdown of 25%. It charges 2% for management and 20% for performance, but has yet to determine a minimum investment requirement.
While Bennett is based in the firm’s Fairfield offices, his partner, James Black-Smith, is on the other side of the world in Sydney, Australia, leading the firm’s research efforts.
Bennett closed his three-year old Standard program last January. Trading S&P futures, treasuries, currency futures and crude oil, the firm was down 4.26% and 0.03% in its first and last years, but up 12.65% in 2004. He adds he is looking to launch a long/short equity fund with a focus on large-cap names sometime next year.