New York-based commodity trading advisor R. G. Niederhoffer Capital Management reported positive gains on three of its four programs in August and announced its assets under management (AuM) have climbed to $943m.
Niederhoffer CEO Roy G. Niederhoffer disclosed in a letter to investors that the firm's flagship Diversified Program gained 7.6% in last month (+4.5% YTD) and was set to end August with $635m in AuM.
In September 2009, the Newedge CTA Index reported that R.G. Niederhoffer's Diversified Program was one of its best performers on the firm's Short-Term Traders Index (STTI) after the Program gained 3.14% during the month.
Another Niederhoffer fund, the Negative Correlation Program outperformed the Diversified Program in August, posting 8.6% returns (+6.7% YTD) while the S&P fell 4.7% during the same period. Negative Correlation is designed to provide "positive-carry" downside protection for equity and hedge fund portfolios, and is meant to serve as a substitute for a traditional short-seller or a put-buying strategy.
Niederhoffer commented on the particular program, "It has been consistently profitable during equity declines, with positive performance in 90% of down months for the S&P 500 since its incept......................