Saturday, 20 December 2014
Last updated 1 day ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.