|
|
From Kirsten Bischoff, Opalesque New York:
In an era of asset-raising challenges, quant strategies are sometimes perceived to have additional hurdles to overcome. In a post-Madoff, post-liquidity crisis and post-financial crisis world, investors are shying away from strategies they do not fully understand. The challenge is doubly difficult for quant traders focusing on managed futures (CTAs). The combination of black box trading and instruments in which few investors are well versed can result in the misperception of high risk.
"It is surprising that we are confronted with that [high risk] perception on a regular basis," says Karsten Schroeder, Founder and CEO of Zug-based Amplitude Capital during a recent Opalesque TV interview with Matthias Knab. Amplitude, which was founded in 2004 has grown to offer 3 fully systematic CTA programs and manages approximately $1bn in assets. "If you look at the actual numbers CTAs, as a strategy within the hedge fund asset class, are one of the most efficient strategies."
In marketing, a cohesive story can work to put such misconceptions to rest. Taking the many different aspects of a fund's business (research, implementation, operations, biographies, etc), and creating a narrative requires that managers address investor worries. In fact, the very things that make a quant approach worrisome to investors are sometimes the mos...................... To view our full article Click here
|
|