Fri, Apr 20, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers March 2018

PERSPECTIVES: Hedge fund launches take off in Asia, Gresham evolves - the long-only firm launches new hedged strategies

 

Gresham evolves - the longonly firm launches new hedged strategies

After years as a long-only commodities shop, Gresham Investment Management is changing its perspective. In addition to Gresham's wellknown commodities programs, J Scott Kerson, Gresham's head of systematic strategies has developed new long/short programs designed to take advantage of idiosyncratic parts of the commodities market.

"We spent a lot of time going through our history and also looking ahead at what might be accretive to our existing platform," says Douglas Hepworth, executive vice president, COO, and CRO at Gresham. "This undertaking essentially involved building a whole new software platform. But we think our investors see the value and there is a runway for future growth."

The hedged programs take two views of commodities markets. One strategy uses a factor based approach to commodities and the other is more quantitative. The quantitative program applies commodities trading algorithms to parts of the market that have less volume and aren't typically on the radar of other commodities managers. "The barriers to entry for what we are doing are very very high," Kerson says. "I feel comfortable saying we are one of the only CTAs with a singular focus on exotic commodities. It is very operationally intensive to do a strategy like this well and we have spent a lot of time on our infrastructure."

CTAs as a category have had a hard time with performance over the past several years. The category of funds posted its worth month on record in February. But Kerson is quick to point out that this strategy puts Gresham well outside cohort of vanilla trend followers. "One of the challenges with CTA investing is that if you build a portfolio of trend followers to capture a particular market......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its