Former Hedge Fund Consultant Readies Quantitative Launch

Oct 14 2013 | 11:31am ET

New hedge fund Orso Capital Management is set to launch its maiden offering, a quantitative stock fund.

Quadrant Plus Partners will aim for long-term growth investing exclusively in Standard & Poors' 500 and Russell 2000 index constituents, Orso founder Andrew Lydon said. Lydon established Orso—which he notes means "bear" in Latin, "because of the strategy's ability to succeed even in bear markets"—earlier this year after running an eponymous hedge fund analysis, modeling and due-diligence company.

“The Quadrant Plus Partners strategy is driven by technical analysis and a proprietary mathematical formula that first identifies the current market environment,” Lydon said. “The strategy then seeks to create alpha by adjusting the portfolio’s exposure to take advantage of opportunities within those environments. The portfolio’s beta is similar to the S&P 500, but the Sharpe Ratio is more favorable, thus making the systematic risk mathematically justified.”

“Fundamental analysis in and of itself is not a predictor of future market movement. We look to take the emotion out of investing by holding dearly to our core beliefs of vigilance, flexibility, and that math never lies.”

Before setting up Andrew Lydon Consulting in 2006, Lydon worked at Bull Run and Fisher Investments.


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