Highbridge Vet Launches Quant Equities Fund

Nov 19 2013 | 1:40pm ET

Highbridge Capital vet Edward Tolson is launching his own hedge fund.

Blue Basin Capital, an algorithmic long/short equity strategy focused on stocks with daily trading volume less than $10 million, will begin operation on January 1.

Tolson was at Highbridge Capital, the JPM-owned hedge fund, from 2003 to 2012, serving as managing director of equity trading technology. Prior to that, he was a founding team member at Intelligent Trading Desk.

Tolson told FINalternatives he expects to launch with $10 million but will limit the size of the New York-based fund to $25 million:

“I saw first-hand the trend of the past several years of capital concentration at the largest managers, to the direct detriment of fund performance,” Tolson said in an email. “With that backdrop and the mediocre performance that's resulted at many of the largest managers, I thought this was the perfect opportunity to deploy a fund with a dramatic capacity limitation but the ability to deliver a truly exceptional return profile.

“Price movements in these stocks are heavily driven by short-term supply and demand dynamics, creating very attractive investment opportunities for algorithmic strategies. However, large quant funds ignore this universe because it's infeasible to quickly build multi-million dollar positions.”

By limiting the fund size, Blue Basin seeks to capitalize on these capacity-constrained opportunities, and deliver a Sharpe ratio over 3.  

Blue Basin employs five people in full and part-time capacities and charges standard 2 and 20 fees.

 

 


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.