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Alternative Market Briefing

Data Capital Management launches systematic fund

Wednesday, January 31, 2018

Bailey McCann, Opalesque New York for New Managers:

Quant funds are having a moment. That's leading some managers to bring on data scientists and developers so they can add phrases like "machine learning" to their pitch decks. But, they will have to go a long way to outperform quant funds like the RenTechs of the world, that have been in the game since the beginning.

The investment team at Data Capital Management was part of that beginning and is now launching its own fund. CEO and founder Michael Beal began his investment career at Morgan Stanley and then went on to create the JP Morgan Intelligent Services (JPMIS) big data investing team. Beal spun out and developed DCM with some of his colleagues from JP Morgan. At DCM, the team has developed a systematic trading strategy that trades equities based on analysis of vast amounts of public data.

DCM's team is building on its skillset from JP Morgan to develop a proprietary trading technology driven by big data. "Realistically, we started building this strategy in 2010," explains Andrej Rusakov, Partner at DCM. "We have developed a system that creates unique trading signals to capture alpha."

The firm's maiden fund will be capacity limited to around $150 million per share class. The founders class is already approximately 70% subscribed. "We think it is important to limit the capacity so that we can remain dynamic in o......................

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