Thursday, 21 August 2014
Last updated 14 hours ago
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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note