Fri, Apr 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers November 2018

PROFILES: Trowbridge Capital, Pythagoras Investment Management

 

Trowbridge Capital offers a twist on long-only

At a time when many investors are thinking about how to reposition their portfolios away from long-only strategies and into more defensive options, a new fund is coming to market with what it considers to be a unique twist on long-only.

Trowbridge Capital Partners has created two trend following programs that are designed to avoid momentum volatility and help investors limit losses through dynamic risk management.

"The thing we do differently from everyone else is that we view risk management as part of our alpha generation," says Trowbridge Capital Partners President Brett Golden in an interview with Opalesque New Managers . "That's really not how risk management is viewed elsewhere and it helps us focus on capital preservation and outperformance when market conditions are well aligned with our strategy."

Trowbridge Capital has created two systematic strategies that are designed to capture mediumterm counter trend opportunities in the market - Trowbridge Aggressive Growth and Trowbridge Dynamic Low Volatility. The strategies attempt to tamp down momentum volatility and also de-risk portfolios as market conditions shift. "We argue that everyone is looking at momentum as a factor in the same way, which leads to a greater potential for momentum crashes as a result of overcrowding. We are opting to diversify our portfolio away from the buy and sell signals generated by the crowd of momentum traders," Golden says

The average holding period for both trading programs is 70-100 days, with a relatively high rate of portfolio turnover. The models will put large portions of the portfolios into cash if market conditions aren't aligned with the strategy. Ahead of October's volatility, the low-vol strategy was more than 35% in cash. As volatility goes down, the strategy will add to its positions. If volatility remains high, the strategy could move even mor......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutional Investors: Here's how much public pensions are in the hole by per U.S. resident, Swedish pension giant awards $1.5bn PE mandate, CalSTRS on lookout for private equity investment consultants, Baltimore Fire & Police commits to LaSalle value-added real estate fund, US, European institutional investors plan to pile into China's capital markets, survey finds[more]

    Here's how much public pensions are in the hole by per U.S. resident From Value Walk: A lthough some government agencies have demonstrated a desire to deal with the pension crisis, the problem of unfunded liabilities continues to get worse year after year. A new report pegs U.S. public pe

  2. YieldStreet acquires Carlyle-backed Athena for $170m to add art financing to its alternative investment platform[more]

    Laxman Pai, Opalesque Asia: Yieldstreet, a closely held digital wealth management platform, acquires Athena Art Finance from Carlyle Group and co-investors in a deal valued at $170m. With this acquisition, YieldStreet, which raised $62m in February to further open to a wider base of investors

  3. Europe: KKR strikes hedge fund gold with British billionaire pair, Net outflows continue at Swiss asset manager GAM, Swiss fintech launches hedge fund platform, Cash-flush buyout firms target Europe in take-private scramble[more]

    KKR strikes hedge fund gold with British billionaire pair From Bloomberg: A pair of 200-year-old wooden elephants adorn the London lobby of one of the financial world's biggest beasts. The carvings guard the Chelsea office of fast-growing $39 billion hedge fund Marshall Wace. Co-foun

  4. Performance: BlueMountain was one of the biggest losers of the first quarter[more]

    From Institutional Investor: BlueMountain Capital Management - the hedge fund firm fighting a proxy battle over the future of bankrupt California power company PG&E - has another problem.Its main fund, BlueMountain Credit Alternatives, is down 4 percent for the year through April 5, according to HSB

  5. Opalesque Exclusive: Alternative UCITS trends: asset outflow and growth in quant strategies[more]

    B. G., Opalesque Geneva: The market for alternative UCITS, the more hedge fund-type of UCITS funds, has doubled since 2008, but underwent its first outflow since then in 2018. According to LuxHedge's database, it now stands at €400bn ($452bn), with about 1,400 funds. Despite the outflo