Mon, Feb 6, 2012
A A A
Welcome Guest
Free Trial RSS RSS icon
Get FREE trial access to our award winning publications
Alternative Market Briefing

The misperception of high risk in quant and CTA strategies - interview

Tuesday, August 10, 2010

amb
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

Banner

Banner

Banner

Banner

Banner

Banner

Banner
Today's Exclusives Today's Other Voices Banner More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: CrossBorder: the euro may grow stronger this year[more]

    Benedicte Gravrand, Opalesque Geneva: Volatility may reign, uncertainty may now be the norm in financial markets, but there are still some who bet on a rebound of the euro, rather than its death. The European Central Bank (ECB) provided €489bn ($644bn) in 3-year emergency loans to ban

  2. GLG: Even at $100bn, Facebook looks under-valued[more]

    Benedicte Gravrand, Opalesque Geneva: Even if Facebook’s valuation may be higher than Google’s, it does not mean it is expensive, according to some, as the site’s revenue should rise with better paid advertising. Facebook Inc., which filed for IPO on February 1st, may command a valuation

  3. Opalesque Exclusive: Friedberg's global macro fund posts 40% for 2011 as strategy shifted to respond to market volatility[more]

    Bailey McCann, Opalesque New York: Friedberg Mercantile Group’s flagship fund, Friedberg Global-Macro Hedge Fund Ltd, was down 8.8% in Q4 but was up 40.9% overall for 2011. Comparatively, the Dow Jones Credit Suisse Global Macro index was up 0.38% in 2011. The Cayman-domiciled fund launched

  4. Opalesque Exclusive: Multi-asset funds gaining traction with investors[more]

    Bailey McCann, Opalesque New York: Multi-asset alternative funds are gaining in popularity as investors look for ways to hedge against market downturns and increased volatility. Indeed, according to

  5. Trading Currencies: During the six years of testing our model, I have never had a losing week - that is easily achievable with the pairs that we choose to focus on. The model was designed to only take a few points off the large daily ranges that the pairs trade.[more]

    During the six years of testing our model, I have never had a losing week - that is easily achievable with the pairs that we choose to focus on. The model was designed to only take a few points off the large daily ranges that the pairs trade.