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Kirsten Bischoff, Opalesque New York: With a 14 year track record Florida based Emory Capital Management, which manages approximately $70m in assets at its Emory Partners fund, has been witness to multiple bubbles and more than one cyclical downturn in the financial markets. However, with approximately 24% net average annualized returns and YTD performance of about +13%, Emory’s arbitrage strategy is meant to provide a hedge against volatility and/or downward trends in the market. Opalesque recently had a chance to speak with Managing Director and co-owner Thomas Wright about the Fund and the strategy, and some of the things that Emory has learned about market downturns over the years.
A “stumbled upon” strategy
Prior to founding Emory, Darrell Malick wrote multiple computer programs based on pattern recognition and a wide array of technical analysis, with the goal of accurately predicting various markets. Instead, while researching ways to handle volatility, he discovered the trade strategy which has become the force behind Emory’s portfolio performance to date. Called “Dynamic Option Arbitrage”, the strategy utilizes options futures on the S&P 500 Index, while remaining uncorrelated with these same equities. Today, the strategy is overseen by Emory Portfolio Manager and co-owner Dustin Kicinski
The tests of time
While the strategy’s risk management has held up to various tests over 14 yea...................... To view our full article Click here
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