Wed, Jul 18, 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. Blackstone, Goldman Sachs take minority stake in Francisco Partners[more]

    Komfie Manalo, Opalesque Asia: Hedge fund managers Blackstone Alternative Asset Management and Goldman Sachs Asset Management (GSAM) took a minority

  2. Ackman's comeback: How to ride his revival[more]

    From Barrons: Bill Ackman has endured a humbling three years: big public losses, an exodus by investors, and what a CEO calls an "ass-whooping" in an activist campaign. Now, the hedge fund titan could be making a comeback. Ackman's publicly traded investment vehicle, Pershing Squar

  3. Legal: Hedge fund seeks inquiry into Russian money-laundering at Danish Bank, Judge dismisses SEC suit against former Och-Ziff executives, Puerto Rico board survives hedge fund's constitutional challenge[more]

    Hedge fund seeks inquiry into Russian money-laundering at Danish Bank From Barrons: A Russia-focused hedge fund has asked Danish authorities to investigate their country's leading bank for allegedly allowing Russian officials to launder millions of dollars stolen over the last decade.

  4. Launches - Northern Trust sets up North America alternative fund services unit, SRI Capital launches maiden $100m fund to foster Indian and US startups, BlueBay launches alternative credit fund[more]

    Northern Trust sets up North America alternative fund services unit From Verdict.com: Northern Trust has launched its alternative fund services business in North America in a bid to fulfil operational and strategic requirements of the growing alternative asset management industry. The

  5. Europe - European insurers deploy cash into infrastructure and private assets[more]

    From Bloomberg.com: For years, Europe's insurers have suffered because of low or even negative interest rates that depressed investment returns. Private equity firms say they're ready to help. The firms are increasingly getting involved in insurance deals in the region, betting their investin