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Alternative Market Briefing

New systematic strategy embraces machine learning

Thursday, July 02, 2015

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Nicholas van der Meulen
Benedicte Gravrand, Opalesque Geneva for New Managers:

The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative beta at lower fees, describes his approach.

VDM Capital Management, LLC was founded by Nicholas van der Meulen in February 2014 on the principle that financial markets are not efficient and that investors exhibit behavioral biases. Van der Meulen previously worked as a research analyst at HSBC and KPMG, after obtaining an MSc in Banking and International Finance at Cass.

Applying an empirical research approach to investing in liquid capital markets, the fund employs a multitude of trading strategies across multiple markets (single stocks, forex, futures), 
in multiple sectors, while being unconstrained in the ability to short and use leverage.

The strategy, which is offered through Delaware-domiciled managed accounts, was incepted in September 2014. It returned nearly 22% in 2104 and almost -5% (to end April) this year. The management fee is 1.5%, the performance fee 15%.

"Rather than taking a traditional approach where we "naively" trade multiple systems across multiple time horizons, we seek, for each underlying system, to optimize the strategy to the particular market that it trades," van der Meulen explains to Opalesqu......................

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