Fri, Apr 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Quest Partners focuses on skew to avoid the CTA drawdown

Wednesday, April 20, 2016

Bailey McCann, Opalesque New York:

New York-based Quest Partners has been one of the few CTAs in the market to consistently perform well despite a years long drawdown for CTA funds. The firm's flagship CTA strategy has had an annualized return of 13.5 percent over the past 16 years. Nigol Koulajian, founder and CEO of Quest Partners recently sat down with Opalesque TV to discuss how he has been able to maintain a track record like this.

Koulajian first got interested in system design all on his own and wanted to start a CTA based on his ideas early in his career. But he ended up waiting until 1999 to launch Quest Partners after several years managing a fund of funds. The strategy Koulajian developed for Quest caught the eye of Man Global Strategies shortly after launch and from 2003 to 2010 much of Quest's capacity was taken up by running a large mandate from the firm. When Man redeemed in 2010, the firm reopened to outside capital.

According to Koulajian, Quest's rate of performance has to do with maintaining a disciplined strategy that trades in shorter intervals than most other CTAs and focuses on finding alpha that is less transient than simply chasing factors as they become popular.

"We have identified 7 style drifts within CTA indices that can significantly impact performance," he explains. "All of these style drifts have a negative convexity and result in negative returns during equity corrections." This kind of performanc......................

To view our full article Click here

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. Institutional Investors: Here's how much public pensions are in the hole by per U.S. resident, Swedish pension giant awards $1.5bn PE mandate, CalSTRS on lookout for private equity investment consultants, Baltimore Fire & Police commits to LaSalle value-added real estate fund, US, European institutional investors plan to pile into China's capital markets, survey finds[more]

    Here's how much public pensions are in the hole by per U.S. resident From Value Walk: A lthough some government agencies have demonstrated a desire to deal with the pension crisis, the problem of unfunded liabilities continues to get worse year after year. A new report pegs U.S. public pe

  2. YieldStreet acquires Carlyle-backed Athena for $170m to add art financing to its alternative investment platform[more]

    Laxman Pai, Opalesque Asia: Yieldstreet, a closely held digital wealth management platform, acquires Athena Art Finance from Carlyle Group and co-investors in a deal valued at $170m. With this acquisition, YieldStreet, which raised $62m in February to further open to a wider base of investors

  3. Europe: KKR strikes hedge fund gold with British billionaire pair, Net outflows continue at Swiss asset manager GAM, Swiss fintech launches hedge fund platform, Cash-flush buyout firms target Europe in take-private scramble[more]

    KKR strikes hedge fund gold with British billionaire pair From Bloomberg: A pair of 200-year-old wooden elephants adorn the London lobby of one of the financial world's biggest beasts. The carvings guard the Chelsea office of fast-growing $39 billion hedge fund Marshall Wace. Co-foun

  4. Performance: BlueMountain was one of the biggest losers of the first quarter[more]

    From Institutional Investor: BlueMountain Capital Management - the hedge fund firm fighting a proxy battle over the future of bankrupt California power company PG&E - has another problem.Its main fund, BlueMountain Credit Alternatives, is down 4 percent for the year through April 5, according to HSB

  5. Opalesque Exclusive: Alternative UCITS trends: asset outflow and growth in quant strategies[more]

    B. G., Opalesque Geneva: The market for alternative UCITS, the more hedge fund-type of UCITS funds, has doubled since 2008, but underwent its first outflow since then in 2018. According to LuxHedge's database, it now stands at €400bn ($452bn), with about 1,400 funds. Despite the outflo