Tue, May 26, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

 

banner