Montague’s Programs Uses More Discretion

Jun 11 2007 | 11:41am ET

Montague Financial’s diversified P100 program futures looks like it may be breaking out of its recent funk. The program returned 18.31% last month after changes to its trading methodology. But it still has a long way to go: It’s down 19.8% year-to-date.

“This program has always been 98% systematic and 2% discretionary and has delivered fantastic rate of return for many years,” according to Montague founder Pascal Guessas, in his latest monthly investor letter. “So I had to take drastic measures and this program is now 50% discretionary; so, in other words, I have to use my trading experience of over 30 years in the futures industry to manage this program in a very different way.”
Guessas cautioned that it is still too early to tell if the program’s adoption of discretionary trading has “done the trick,” stating that it needs another three to four months of performance to be sure. “I am still running the P100 program on a systematic basis on the side and will be able to see straight away when it can work again the way it is supposed to,” he wrote.
The futures veteran is also converting his systematic P50 program to a 50% discretionary program as of today hoping that the conversion will help turn the program’s performance around as well. The program was down 1.74% in May and is down 29.09% in 2007.

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