Fri, Feb 12, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Thomas Rollinger takes helm at Red Rock Capital

Tuesday, September 10, 2013
Opalesque Industry Update - A respected veteran in systematic managed futures has joined forces and taken the reins of an award-winning CTA. Thomas Rollinger, who worked alongside “godfather of the quants”, Edward O. Thorp, is now Managing Partner and Chief Investment Officer of Red Rock Capital.

Red Rock Capital was founded by former electrical engineer Scott T. Hoffman and celebrated the 10-year anniversary of their track record last month. Since their inception in September 2003, their flagship Systematic Global Macro program has produced over 9% compounded annual returns with low annualized volatility of only 13%.

“I was originally a satisfied investor in the Systematic Global Macro managed futures program and I’d been collaborating on R&D with the Scott Hoffman for several years before deciding to join Red Rock”, Rollinger said. “As a believer in and co-developer of the strategy, I decided to make a larger investment by becoming a partner in Red Rock.” Rollinger co-developed and co-managed the systematic futures strategy that Thorp referred to as “System X” in both Scott Patterson’s 2010 best-seller The Quants and then again last year in Jack D. Schwager’s Hedge Fund Market Wizards. Rollinger and Hoffman recently published an analytical white paper entitled, Sortino: A ‘Sharper’ Ratio.

About Rollinger, Hoffman added, “Tom was easily my most savvy and knowledgeable investor. I had never had anyone do such detailed and thorough due diligence on me before investing. To have him join forces with me was a natural fit.”

Upon partnering, the two moved Red Rock Capital to downtown Chicago. Their office is located along Chicago’s historic Magnificent Mile and Rollinger added, “I wanted to afford us the best opportunity to get on the radar of institutions and family offices.” Red Rock Capital’s flagship Systematic Global Macro program has a full 50% exposure to physical commodities and has produced a high 1.43 Sortino ratio historically. Later this month Red Rock Capital is launching a new Commodity Long/Short program for Qualified Eligible Participants. The strategy utilizes a unique, quantitative pattern recognition technology and has an average holding period of only 9 days. Unlike the most popular CTAs, the program solely trades physical commodity futures. Rollinger said fees are negotiable, but that they intend to reserve capacity for large, savvy investors. “Our aim is to maximize risk-adjusted returns for ourselves and our investors. Because we run such a lean organization we can be extremely competitive with our fees. Per my mentor, Edward O. Thorp, we want to run a merit-driven – not a sales-driven – organization.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise