So what could possibly be unique about another CTA trend follower?
Our asset management model seeks to emulate the way natural life has resolved the problems of uncertainty, risk management, growth, and adaptability.
Uncertainty is solved at the level of individual autonomous agents – each life form or animal is equipped with a body, resources (energy) and behavior (strategy) that enables it to survive and procreate. Each species’ survival is proof positive that its strategies are successful.
Risk management is solved through multiplication of autonomous agents and diversification of survival strategies. Although every species’ strives to grow – maximize its biomass – this is not done by infinite growth of individuals (no tree grows to the sky) but by multiplication of individuals that remain at a certain (probably optimal) size. Finally, as the conditions in the habitat change, life adapts by varying the genetic make-up in successive generations.
In this sense, even with perishable individuals and extinguishable species life has achieved infinite sustainability;
To emulate life and create a sustainable approach to investing, we built a knowledge framework within which we can formulate a nearly infinite number and variety of trading strategies. Each strategy represents an autonomous agent equipped with a limited risk budget. We envision managing assets by deploying hundreds or thousands of trading strategies, each in charge of a small quantity of risk. Our trading model is applicable to all liquid financial or commodities markets. Currently we trade in 36 markets using 91 trading strategies. Our performance has been on par with the world’s leading CTAs as tracked by Credit Suisse/Tremont index of blue chip managed futures hedge funds.
A white paper detailing our investment philosophy, technology and track record is available. We currently manage a small “friends and family” portfolio and are looking for a seeding partner. We’d also consider bringing our model to an organization that could do better justice to its considerable potential. The model is technically superb and is entirely glitch-free. I mention this because model risk can have very material impact on long-term performance.
I borrow Michael Maboussin’s words from his last research piece: “in evaluating a portfolio manager, it is much less important to see how she has done recently than it is to assess the process by which she did her job. A good process provides the best chance for agreeable long-term outcomes.” I would attest without hesitation, that the quality of our process / technology is superb and beautiful.