Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

BlackCat Capital offers welcome green shoot in managed futures sector

Tuesday, January 18, 2011

By Beverly Chandler, Opalesque London

A welcome green shoot of recovery in the CTA community lies at the heart of the January launch of BlackCat Capital Partners in London. Matt Breakwell, John Reeve and Wei Xia are chief operating officer, head of trading and head of investment research and risk management for the US$ 5m technology led futures fund. In an interview with Opalesque, the team explained that they lean more towards financial futures, trading globally over 21 markets.

Breakwell and Reeve originally met up in 2005 and discussed building an investment business. The pair started trading proprietary capital in October 2008 and Xia joined them in 2009. BlackCat became authorised as an investment manager in November 2010 and ended proprietary trading operations with over US$ 3m of partnership capital.

In their two years and one month of prop trading they achieved a monthly compounded annual gross return of 68.66% on a daily volatility of 1% and a Sharpe ratio of 3.1. In that two year period, their only negative months came in March '09, when return was 2.58% down and May '09, when it dropped by 8.10%.

Reeve describes their technology led system as 'the fruits of his labour' for over 10 years. Reeve had been prop trading on his own for about six years before meeting Breakwell. "We are trying to capitalise more on our technology" says Reeve. "We have developed a comprehensive set of software tools and infrastructure and so wanted to expand." Reev......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo