We often get new traders to our site that fit a particular profile. However, it is rare that we have a number come on at the same time with as much industry experience as the following three.  Perhaps not surprisingly, they all started strongly out of the gate. 

Absolute Return Capital ManagementARCM Ionic Strategy

Larry Abrams

Larry Abrams spent the past 30 years in the futures industry, from his time at Cooper Neff, a leading options firm, to prop trading on the Chicago Board of Trade (CBOT) floor. His strategy, the ARCM Ionic Strategy, is based on ideas developed during his career creating a diversified momentum-based program paired with traditional portfolio allocations to fixed income and equities. The goal of the combined portfolio is to provide an efficient model that gives investors access to both the expected market returns and a non-correlated component that potentially thrives in high-risk markets.  As the winner of the 2021 Coquest CTA Challenge, which measures risk-adjusted returns amongst other criteria, and a solid start to 2022, he is doing well thus far. 

NWOneNWONE Diversified Strategy

Jae-Min Hyun

Jae-Min Hyun is an industry veteran with a polished academic resume that led him to Morgan Stanley in 2004, where he gained experience across asset classes and trading styles.  He finished his 9-year stint as a prop trader in commodities, equities, interest rates, and FX.  This led to a more commodity-focused role at Ellington Management Group, a large hedge fund provider, as a Global Macro trader. He also began to see the value of system development to express strategy.  A desire to grow his own business later led him to create NWOne.  His Diversified Strategy looks at fundamental drivers that are fed into the proprietary system to express weights for outright or spread trades across sectors.  Each component is specific to the commodity traded. While originally conceived as stand-alone products for different groupings, the trader felt that the investor would benefit most from the full complement of strategies.  Returns thus far reflect an intense focus on risk management which demonstrates the trader’s depth of experience. 

PGM Asset ManagementTrident Program

William Sexton

William Sexton served as the Chief Executive Officer of Newedge LLC, one of the largest futures commission merchants (FCMs) globally and a subsidiary of Société General (Soc Gen). This followed a career as a prop trader and evaluator of trading strategies.  Like the strategies above, the Trident Program is systematic and trades a diversified basket of commodity and financial futures.  Equity exposure is not included, which contributes to a high negative correlation to the S&P at -0.39.  Unlike NWOne, no fundamental data is used for trading decisions; rather, price, momentum, and volatility drive trade selection. Holding periods are relatively short at six days, but exits are driven by market action. While the returns are the largest of the three, the standard deviation of returns is also the highest reflecting a different risk/reward outlook that may appeal to more aggressive investors. 

Whatever type of exposure you are looking for to help improve your portfolio, IASG probably offers a manager that fits the bill.  New ideas enter the arena all the time.  I recommend working with a professional to evaluate which one is the best for you for long-term success. 

As always, please reach out with any questions or comments.

Greg Taunt – Portfolio Manager 847-877-0887    

Photo by Alejandro Benėt on Unsplash