Edison, N.J.-based Paskewitz Asset Management’s five-year-old Contrarian Stock Index program this month surpassed $100 million in assets under management.
The fully-systematic contrarian program, which invests exclusively in Standard & Poor’s 500 futures, returned 39.87% last year and is up 9.47% this year through April. It uses multiple models to forecast short and intermediate term tops and bottoms in the S&P500 index, and then simultaneously generates trades, buying identified market bottoms, and selling identified tops.
The firm was founded in May 2003 by namesake Bradford Paskewitz, who worked on radar signal processing for missiles at General Electric and also spearheaded an artificial heart project for Electro-Catheter Corporation, a medical device company.
“Market inefficiency is the fact that for S&P and many other markets, short-term volatility is significantly higher than longer term volatility,” In a due diligence questionnaire, Paskewitz said. “My strategy exploits this inefficiency using a proprietary multi-strategy approach. Each sub-strategy uses past price information to determine if it identifies a setup for an exploitable market top or bottom. If so, it enters a trade.”