Cantab Swings Into The Red With Historically Bad Month

Jun 4 2013 | 10:18am ET

Cantab Capital Partners has enjoyed a meteoric rise over the last few years. But the quantitative hedge fund has hit something of a speed bump.

The British firm's six-year-old flagship hedge fund had its worst month ever in May, falling 8.37%. The drop wiped out Cantab's year-to-date gains, leaving the fund down 5.4% on the year, Financial News reports.

"Last month the value-oriented models had a poor month because they were short the U.S. dollar and long bonds," co-founder Ewan Kirk explained to FN. "Apart from the value models, May would have been a reasonable month.

Still, "the month is in line with statistical expectations," Kirk added. "It's disappointing but the important thing to remember is that this is only a 1.5 standard deviation event. For a 20% volatility fund, you'd expect to see this on average once every 15 months. Investors understand the higher volatility associated with a 20% volatility product. They get the upside in the good months but there will be months when this happens."

Cantab has US$5.2 billion in assets under management, having closed its UCITS-compliant fund last month due to new European Union regulations.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...