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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.