Fri, Oct 19, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Opalesque Roundable: The downsides of handcuffing a hedge fund manager

Thursday, December 07, 2017

Komfie Manalo, Opalesque Asia:

Many investors require their hedge fund managers to stick to their mandates. However, there may also be a downside to that as many funds, even with large assets under management, are not making money just because they are constrained by their mandates, said Gaurav Chakravorty, CIO of qplum, a wealth manager which uses machine learning to build an end-to-end AI-driven trading system.

Commenting on lackluster hedge fund returns during the latest Opalesque 2017 INVESTOR Roundtable, Chakravorty said, "They have to keep following the strategy they have been marketing for 20 years or so. For example, AQR cannot suddenly stop doing risk parity or momentum, that's what is expected from them."

He gave a personal example how having flexibility gave him and his team the opportunity to make a fortune: "I was trading for a family office, and until 2007 things were slow and we were doing some sort of short term mean reversion, and when volatility picked up- and this is sometimes not a sudden thing but more gradual- we saw that we could not be doing slow mean reversion. We then moved to faster price prediction strategies.

"Nowadays, this trade is called 'high frequency trading.' There was no name then, there was no precedent. We were able to change our mandate depending on where we saw greater opportunity. We could run......................

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. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Stock slump aftermath: Hedge funds got caught long and wrong before stock slump, The huge 'blackout' that may be deepening market turbulence, Market veterans don't see the bottom yet: 'More selling is yet to come', Hedge funds hold up in rout as defensive stance finally pays off, Rally erupted in gold market days after funds made big bear bet[more]

    Hedge funds got caught long and wrong before stock slump From Bloomberg: In a moment of bad market timing, hedge funds had increased their bullish bets on U.S. stocks to the highest since February, and second-highest in five years, just before last week's sell-off. Speculative net

  4. Robert Citrone's discovery cashes in on bearish bets[more]

    From Institutional Investor: The macro hedge fund is riding strong gains since mid-year thanks to savvy wagers against Italian fixed income and other instruments. Macro hedge funds are finally getting a reprieve, between the bond market selloff and overall financial market volatility - two even

  5. Hedge funds at the 'core' of stock slump may be done offloading, Why hedge funds will stick with ever-risky short volatility trades[more]

    Hedge funds at the 'core' of stock slump may be done offloading From Bloomberg: One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week's rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categori