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.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note