Wednesday, 1 October 2014
Last updated 11 hours ago
May 15 2008 | 11:44am ET
Emerging hedge fund investor Magnum Global Investments has brought another manager into its fold. The firm has committed capital to the Yield Curve Opportunity Fund, an arbitrage strategy dubbed.
The fund, managed Peter Powers, a registered floor broker on the Chicago Board of Trade and a former vice-president in institutional fixed income at Dean Witter, focuses on discrepancies occurring along the U.S. Treasury yield curve, Hedgeweek reports.
YCOF invests in the Treasury futures market employing CBOT contracts and a proprietary model to identify discrepancies in the yield curve, comparing values of Treasury instruments of differing maturities to determine whether any particular instrument is comparatively undervalued or overvalued against others along the yield curve. Its arbitrage strategy includes the simultaneous sale and purchase of Treasury futures contracts, creating a spread among commonly traded Treasury notes and bonds.
According to Powers, the fund’s spread positions are utilized to arbitrage temporary yield curve discrepancies.
In its 32-month history, the fund has returned a monthly average of 3.06%, and has suffered only one monthly drawdown, of 3.68%.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...