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Alternative Market Briefing

1512 St. Gallen Capital Management trades against the trend

Wednesday, August 01, 2018

Bailey McCann, Opalesque New York for New Managers:

Thomas Kochanek has had a varied career in the finance industry. He started his work at a Spanish investment bank working with institutional clients. He then became Director of a Malta-based Alternative Investment platform and Co-CEO of a Zurich-based quantitative hedge fund. Eventually, he started working on a PhD and his thesis research became the basis 1512 St. Gallen Capital Management, the investment firm he launched in 2015.

The Swiss firm runs a counter-trend trading program. The strategy looks for 5 percent changes in market trends and tries to capture 2-3 percent of that move over a horizon of 1-15 days. "We analyze the market looking for trends between investor groups, there are often dispersions between big money investors and smaller investors," Kochanek tells Opalesque New Managers.

Over a month, Kochanek will look for these moves and may be fully invested in cash over several days. He says he's focused on only making high-conviction trades. "For us, all cash is a trade," he says. Kochanek's trading program considers a global universe, with the goal of being uncorrelated to the market as well as trend followers. The program will go both long and short, capturing changes in the market as well as early momentum. The idea is to capture breakout trends as well as corrections.

"There i......................

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