Algorithmic currency trading firm Leman Capital Management achieved a new milestone by breaking through the $100m mark in assets under management. This feat coincided with the five-year anniversary of its BVI-domiciled Quant Fund and increased investor interest in algorithmic trading during bouts of market volatility.
The firm received strong interest from prospective investors in Q2 and Q3 2016, despite industry-wide capital net outflows. One of the drivers behind the interest was the fact that the Quant Fund has not had any losing years during its five-year lifespan, remaining one of the best performing computer-driven funds.
The reported annualized total return with dividends compounded monthly is 53.89% over five years, while the three-year annualized return is 68.67%. Despite the 0.85% return in July this year, the Quant Fund has returned 3.44% and 9.68% in August and September, respectively. The maximum monthly drawdown was 3.30% in August, the highest this year. At the same time, the maximum monthly drawdown in stress-testing simulation for the period was under 9% compared with 11% last year, indicating the reliability and quality of the algorithmic strategies combined with quantitative analysis to deliver consistent low-risk outperformance.
Although the industry has broadly been seeing net outflows, the pace is slowing and illustrates more traction among investors keen to adopt systematic strategies. Investors looking to align themselves with the strong performance of quant strategies led to an increased shift away from fundamental investing approaches during this period.
The high degree of market uncertainty has refocused investors on the benefits of algorithmic-driven strategies to help navigate an increasingly complex environment. Importantly, the credibility of these strategies as a valid option is growing beyond niche players. A survey taken by Greenwich Associates indicates that sophisticated investors increased their use of algorithmic trading in the FX market by almost 30% in 2015. This has taken place at the same time as volume of equity trading directed to electronic channels in the US remained flat.
“We operate algorithmic trading strategies that apply advanced quantitative research techniques to exploit short-term pricing anomalies, which can arise in timescales as small as a few seconds, making them impossible for a human trader to perceive,” said Daniel Leman, Managing Director of Leman Capital Management.
Maintaining high-quality strategy output remains a key principle for Leman. Achieving this has enabled the firm to produce consistently strong returns and rank as one of most promising alternative investment managers for 2016.
Company Name: Leman Capital Management
Contact Person: Kimberly Odell
State: Greater London
Country: United States