New Managers
October 2014
Fund Profiles: Short-term trading quant fund beats S&P since '09Jon Beyer A relatively new multistrategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-based Princeton Asset Management Group LLC was started in 2007 by Jon Beyer and Kevin Wong, who were formerly college roommates, and was seeded by a mutual friend. The seeder was interested in starting a quantitative hedge fund, which fit with Beyer and Wong's respective computer science and statistics degrees. Before Princeton, Mr. Beyer, who received a B.S.E. in computer science from Princeton University, co-founded and served as Chief Information Officer for TerraCycle, a consumer goods company specializing in products made from reused raw materials. Mr. Wong received a B.S.E. in Operations Research and Financial Engineering from Princeton University, and he minored in both Finance and Engineering Management Systems. His senior thesis research involved the investigation of Quantitative Optimization Strategies for Portfolios Containing Hedge Funds. Prior to joining Princeton AMG, Mr. Wong was a Vice President at Merrill Lynch After spending a few years researching various types of quantitative trading, Princeton began to focus on statistical arbitrage. The managers then started trading a managed account for the seeder in early 2009, focusing on statistical arbitrage in select sectors. It has annualised 22.7% from January'09 to August'14, compared to 18.8% for the S&P 500 (TR) and 3.6% for the HFRX Global. The Princeton AMG Absolute Return fund was launched in July 2010 as a master-feeder Cayman Islands-domiciled fund. Princeton's focus today is on market-neutral statistical arbitrage that exploits shorter-term pricing inefficiencies in smaller niches of the market. They trade over 600 securities, primarily focusing on closedend funds, utili...................... To view our full article please login
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