Saturday, 25 October 2014
Last updated 1 day 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.