Cleveland-based Empiritrage’s new flagship fund is off to a running start, returning 14.88% in its first three months.
The Empirical Quantitative Value Series II fund was launched on Nov. 1 with a $20.6 million investment from a New York-based fund of funds. The vehicle has since grown by a further $8 million.
EQV is based on the strategies developed by Wesley Gray., an assistant professor of finance at Drexel University.
According to Gray, EQV’s returns have been driven by the model’s allocation to contrarian value plays like the controversial for profit education business with an investment in DeVry University, beaten down handset manufacturer Research in Motion, the fallen Wall Street golden child Apple, as well as Cisco and Dell Computers.
The EQV strategies are implemented via a managed account platform. The funds are designed to outperform competitor systematic value systems while maintaining a high degree of tax efficiency. Empiritrage charges a 0.95% management fee and no performance fee. The firm now manages a total of $130.5 million in its funds.
In addition to his managing member role at Empiritrage, Gray has penned a new book, Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors. The book was released by John Wiley & Sons in December 2012 (co-authored with Tobias Carlisle).