Tuesday, 27 September 2016
Last updated 1 hour ago
Aug 28 2008 | 10:39am ET
A former managing director of Fortress Investment Group has recently founded his own New York-based hedge fund firm and has already launched two funds.
According to fund documents obtained by FINalternatives, Michael Graves founded Tesseract Capital earlier this year, and launched the Tesseract Incubator Fund and the Tesseract Master Fund on July 2.
“The investment objective of the Tesseract Incubator Fund, through its investment in the Tesseract Master Fund, is to seek capital appreciation while minimizing risk by following a trading strategy based on the investment manager's proprietary models,” states the offering memorandum. “In employing the Tesseract Master Fund's investment strategy, Tesseract Capital will employ a statistical arbitrage strategy that generates a multi-asset class portfolio with thousands of positions amongst multiple time horizons and countries.”
The firm will use proprietary trading models including such techniques as quantitative fundamental, pattern matching, machine learning, earnings evaluation, among others.
Prior to founding Tesseract Capital in May, Graves was the managing director of the Swiss Re Global Arbitrage Team and began at Swiss Re in January of 2006. Before that, Graves founded FountainHead Capital and Area51, hedge funds which he ran for five years. These funds were later purchased by Fortress Investment Group, where Graves became a managing director.