ADG Capital Management

United Kingdom-flagUnited Kingdom Type: Commodity Pool Operator (CPO)
Commodity Trading Advisor (CTA)
Managed Forex Manager
Registrations: FCA ID: 496654
NFA ID: 0465332
Program Past 12 Months Jun YTD CAROR WDD AUM Min Inv Visits

Past performance is not necessarily indicative of future results. The risk of loss in trading commodity futures, options, and foreign exchange ("forex") is substantial.

CTA Introduction

The ADG systematic macro fund is a global macro hedge fund based in London.

The strategy has its roots in Global Tactical Asset Allocation (GTAA) which can be viewed as a class of strategies aimed at the generation of excess return by means of tactical reallocation between asset classes. The ADG Systematic Macro strategy takes this concept one step further; not only reallocating capital between asset classes but also reallocating risk between the factors that drive the models.

The strategy utilises macroeconomic and other fundamental signals to generate return expectations. Key to the process is allocation to a set of diversified risk premia, and the various risk management filters in place. No trend or price momentum is used.

The objective is to achieve gross return of 12-15% in excess of T-Bill. This should be achieved whilst maintaining low correlation with traditional asset classes such as equities and bonds as well as with other hedge fund strategies, both over the long term and during tail events.

The strategy trades up to 13 developed stock market index futures, 6 developed government bond futures and the VIX future as proxy for market volatility. Additionally, the Fund will also trade FX forward contracts of 9 developed countries. The strategy usually maintains positions in all these instruments and does not have either a long or short bias. The team responsible is comprised of three portfolio managers, who also carry out the primary research, and four dedicated quantitative developers. The portfolio manager, Igor Yelnik, was the architect behind a similar strategy at his previous firm which delivered excellent results and managed several billion dollars. The bulk of the team have been together for a number of years. In addition to the Investment team there is a compliance officer, a risk officer, a dedicated marketer, and the business is able to draw on the infrastructure of the wider ADG Group. The strategy is available in Cayman and managed account format, and we are looking for a day-one investor into a UCITS. In addition to the fund structure we are able to offer customised programmes such as currency and overlay mandates.