Wednesday, 1 April 2015
Last updated 2 hours ago
Oct 30 2007 | 11:49am ET
A group former New York Stock Exchange floor traders are prepping their maiden hedge fund for launch on Nov. 1. Long Island, N.Y.-based EW Trading is preparing to unveil its ExSpecialist Fund, which will trade equities using computer-driven models.
The day-trading fund employs a long/short trading strategy, according to co-founder Chris Dearborn. “It’s algorithmic, IT trading with former specialists from the NYSE floor taking the point of entry into the stocks,” said Dearborn. “It’s not a black-box strategy because we find picking the point of entry as the most crucial point to it. Anybody can have an algorithm but the only control you have over is the opening and the close with stocks fluctuating more than ever before.”
According to Dearborn, the fund abides by three principles. It will hold 95% to 100% of its assets in cash at the end of the trading day, because “we were all down here at 9/11 and you never know what’s going to happen.” The fund will also not trade outside the average quoted size of the stock because “you don’t want to be a market mover, you want to become part of the trend,” and will seek to trade without emotion.
Dearborn and his partners, Roland Cozzolino, Scott McMahon and David Silber, are currently raising capital from friends and family. The fund charges a 2% management fee and a 20% incentive fee.
“All of these very talented specialists on the floor are now looking to start hedge funds and we have seen a few like this now and expect there to be more,” said a source close to the firm.
The fund uses Shoreline Trading Group as its prime broker and Goldman Sachs as its custodian.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…