Winton Down In Bad Year For Quants

Jan 9 2013 | 12:49pm ET

Winton Capital Management suffered its second-ever annual loss last year, headlining a difficult year for British quantitative hedge funds.

Winton's US$10 billion flagship Futures Fund fell 3.5% in 2012. The fund had lost money only one other year since its launch in 1997.

"It's always disappointing when we're down, but it's important to remember that this is only the second time it has happened in 16 years," a spokesman for Winton chief David Harding told The Independent.

It may be small comfort, but Winton was certainly not alone in 2012. While the average hedge fund posted returns in the mid-single digits last year, quant funds did not do so well. The Newedge CTA Trend Sub-Index lost 3.4% last year, its second-straight down year. Other prominent quants to lose ground last year include Man Group's AHL Diversified Fund, which lost 2.1%.

Winton last lost money in 2009, when it was down 4%. It rose 6% in 2011, otherwise a difficult year for quants.

Of course, not every computer-driven fund lost money last year. Cantab Capital Partners' quant fund rose 15% last year, and BlueCrest Capital Management eked out a second-straight sub-1% annual return, rising 0.02% last year.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note