Sunday, 24 July 2016
Last updated 1 day ago
Jul 27 2012 | 11:50am ET
For the second time in a week comes news that a Nomura Holdings veteran is going into the hedge fund business.
Patrick Boyle, a former trader at Nomura, will launch his Palomar Capital next month, seeding by International Standard Asset Management. The London-based firm is expected to debut with US$50 million.
Palomar will employ a directional quantitative strategy, using past financial research to predict market moves in response to changes in sentiment. Boyle, who worked at Millennium Management and the Royal Bank of Scotland Group before joining Nomura, said he has been running the strategy, which invests in stock index futures, since 2001—and that it's never suffered an annual loss.
"For a system like mine, the direction of the market doesn't really matter that much," he told Bloomberg News. "I don't need it to be an up year or a down year to make money, but I do need the market to move in a somewhat predictable way. During the credit cruch, you had moves that were somewhat predictable if massive;" Boyle said his system returned 12% in 2008, when he was a proprietary trader at RBS.
Boyle isn’t only getting money from ISAM, another quantitative shop that is headed by former Man Group CEO Stanley Fink. He's also currently registered with the U.K. Financial Services Authority through that hedge fund.
Boyle said Palomar has a capacity of about US$1 billion.
Boyle's plans come hot on the heels of another former Nomura trader, Jean-Noel Payer, who plans to launch his Voltex Asia Capital in September with at least US$250 million. Payer's former boss at Nomura, Benjamin Fuchs, has also gotten the hedge fund bug, launching his BFAM Partners last month.