Winton Boosts Risk

Aug 7 2013 | 1:00pm ET

Winton Capital Management, which spends about US$30 million per year on research, has re-engineered one of its quantitative hedge funds to increase risk and—hopefully—returns.

The US$24 billion firm has overhauled its smaller Evolution Fund, which manages US$40 million, Reuters reports. The fund focuses on Winton's best ideas, and will now do so with a far higher allocation to stocks. Evolution now invests 40% of its risk in equities, compared to 20% for Futures, and 60% in futures trading. Evolution also targets higher volatility than the larger fund, 12% as opposed to 10%.

"The allocation to cash equities is closer to what we believe the optimum is," Matthew Beddall, chief investment officer, told Reuters. "If it does better than the fund fund, then I image money will move" between the two.

Year-to-date, Evolution has returned 7.34%.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR