Opalesque Industry Update - Horton Point LLC, a systematic trading firm based in New York, is expanding into the seeding business. Originally built as proprietary trading firm, Horton Point later expanded to include a number of institutional managed account investors. It is now moving into the incubation business and is raising a private equity fund to serve as a seeding vehicle for a number of systematic traders. |
“We see large numbers of deeply experienced talented quantitative traders being displaced from large firms. Many are eager to set up their own shops. Their alpha-generation skills are very appealing, but they lack other ingredients necessary to build a successful hedge fund organization”, said Horton Point CEO Dimitri Sogoloff. “We feel we are uniquely positioned to help them in this process”.
As part of its deal with start-up managers, Horton Point plans to provide capital as well as operational, risk management, compliance, and marketing infrastructure. “We are practitioners of systematic trading and have built a robust infrastructure to serve our own needs. It’s been battle-tested since 2007 and has significant excess capacity to take on select outside managers”, added Sogoloff. The managers will also have access to the services of Horton Point’s COO, Chief Risk Officer, and a business development professional.
In preparation for the platform launch, Horton Point has identified a number of managers and begun negotiating terms. TheSoundview Emerging Managers Fund I is set to launch early next year. It will focus exclusively on short-term systematic managers with limited capacity.
Horton Point does not disclose the details of the fund terms other than to say that it will offer very competitive fees and will provide investors with significant minority interests in the underlying managers.
About Horton Point: Launched in 2006 as a family office, Horton Point developed a number of systematic strategies which it trades internally as well as for several institutional investors via managed accounts. Its management team which includes CEO, COO, Chief Risk Manager and Head of Business Development, has more than 100 years of combined experience in the alternative investment space.
About Dimitri Sogoloff: A founder and CEO of Horton Point, Mr. Sogoloff was a co-founder and president of a $2 billion multi-strategy hedge fund, from 1992 to 2006. He was also involved in the launch of several successful financial technology companies which currently serve over $300 billion of hedge fund assets.