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Statistical Arbitrage Related News
in chronological order

See also: Statistical Arbitrage Related Books, Statistical Arbitrage Related Scholarly Papers, or Statistical Arbitrage Home Page.

Table of Contents:

July 2006
- July 10 - Inside Hedge Funds
- July 10 - Southridge Capital Management LLC Affiliate Acquires Double Alpha Group LLC
February 2006
- February 9 - Last Atlantis Capital Management launches diversified Long/Short...
- February 4 - Last Atlantis Capital Management Promotes Aaron Hein to Managing...
January 2006
- January 24 - BluMont Canadian Opportunities Fund Reaches Five-Year Performance
- January 19 - Ex NAPF chief named to BESTrustees board
- January 17 - EdgeTrade Introduces a New Corporate Image and Identity
- January 16 - Hedge fund returns falling and unlikely to bounce back soon

Inside Hedge Funds

July 10, 2006

From Minyanville:
A statistical arbitrage long/short equity hedge fund will sell Ford (F) stock against General Motors (GM) stock thinking F stock price has statistically outperformed GM stock price by a small amount and it should revert back to the mean of the range that the two trade against each other. They will do this over and over again taking small profits on small range moves between many highly correlated stocks.

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Southridge Capital Management LLC Affiliate Acquires Double Alpha Group LLC

July 10, 2006

From PR Newswire:
Southridge Capital Management LLC ("Southridge"), an investment firm providing capital to growing enterprises internationally, is pleased to announce that a Southridge affiliate has acquired Double Alpha Group LLC ("Double Alpha").

Double Alpha, founded in 1994, invests clients' capital in world financial markets utilizing proprietary quantitative trading techniques. The investment goal is to generate risk-adjusted premium returns on the long and short side of the equity market while maintaining a near neutral portfolio. As an innovator in the niche strategy of statistical arbitrage, Double Alpha is continually researching and implementing quantitative models which explain the short term volatility of individual equities. Clients have included high net worth individuals, institutions, fund of funds, pensions and endowments.

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Last Atlantis Capital Management launches diversified Long/Short Statistical Arbitrage program

February 9, 2006

From Newswire Today!:
Last Atlantis Capital Management, LLC (St. Thomas, USVI) announces the launch of The LACM Long/Short Statistical Arbitrage Program within The Last Atlantis Master Fund. The same manager has traded the program since 1998 using a highly diversified pairs library developed through years of research.

LACM’s Long/Short program features a library of approximately 1,000 pairs of equities developed through a proprietary research method that matches highly correlated companies on a fundamental and technical basis. The proprietary research is ongoing, and pairs may be added or removed from the library as research dictates. Once in the library, each pair is monitored with a variety of proprietary and technical indicators to determine when it should be bought or sold.

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Last Atlantis Capital Management Promotes Aaron Hein to Managing Director of Research

February 4, 2006

From The Open Press:
Last Atlantis Capital Management, LLC (St. Thomas, USVI) announces the promotion of Aaron Hein as the firm’s Managing Director of Research. In this role, Mr. Hein oversees new development of Last Atlantis’ Alpha+Network, the firm’s systems incubator and trading technology infrastructure. He is also directly responsible for the company’s Quantitative Intraday Futures Trading and Equities Statistical Arbitrage products for which he developed the testing and trading systems, as well as the products’ trading methodology and procedures.

Mr. Hein has played a key role in developing many of the primary tools and technology that comprise Last Atlantis’ Alpha+Network. He developed the network’s Futures Market Tick Data Database and the Historical Testing Cluster, including software tools for brute force optimization of extensive parameter spaces, walk forward analysis, trading basket optimization, and portfolio analysis.

Mr. Hein spent the last five years as one of the top traders at Last Atlantis Capital. While there he worked extensively on developing proprietary trading systems in the equities, options and futures markets.

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BluMont Canadian Opportunities Fund Reaches Five-Year Performance

January 24, 2006

From CCN Matthews:
BluMont Capital Inc. (TSX VENTURE:BCC) and its wholly-owned subsidiary, BluMont Capital Corporation ("BluMont") are pleased to announce that the BluMont Canadian Opportunities Fund (the "Fund"), which employs multiple investment styles with low correlation to one another, has reached its five-year performance anniversary. Established January 1, 2001, the Fund has produced an annualized return of 13.02% (since inception) versus 6.62% for the S&P/TSX Total Return Index Value and 7.97% for the HFRI Fund Weighted Index over the same period. Moreover, the Fund has produced positive returns each of the past five calendar years with annualized volatility of 9.82% (versus 14.00% for the S&P/TSX TRIV) and a Sharpe Ratio of 1.07.

The BluMont Canadian Opportunities Fund is the 9th-ranked alternative strategies fund in the 5-year category on GlobeFund.

The Fund strives to deliver consistently positive returns each year independent of the performance of the S&P/TSX Index by investing in multiple investment styles with low correlation to each other that also mitigate the overall risk of the portfolio through various hedging strategies by combining complementary and non-correlated strategies currently managed 45% by BluMont Capital, 25% by Hillsdale Investment Management, 10% by SciVest Capital Management, 10% by Integrated Managed Futures Corp and 10% by Orchard Asset Management.

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Ex NAPF chief named to BESTrustees board

January 19, 2006

From International Publishers Limited:
Peter Thompson, former Mercer HRC worldwide partner and ex-National Association of Pension Funds (NAPF) chairman, has been appointed to the board of BESTrustees as director.

Thompson – an actuary with some 30 years of pensions experience – joined BESTrustees in April 2005 as an associate.

Thompson told IPE that this is a new position on the board, and that his new responsibilities are still to be confirmed.

He added that BESTrustees is taking on several new clients, and that there are plans to expand the number of associates. Thompson’s successor has not yet been named.

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EdgeTrade Introduces a New Corporate Image and Identity

January 17, 2006

From TMC Net:
EdgeTrade, the independent, agency only broker and developer of algorithmic strategies and direct market access (DMA) software, today announced the formal introduction of a new corporate identity and image that underscores the benefits of its business model, particularly, in an age of competing interests in institutional, electronic trading. Client firms of EdgeTrade, of which there are more than 150 in North America and Europe, include hedge funds, mutual funds, asset management firms and broker-dealers. A new website (www.EdgeTrade.com) is the launching pad for the company's focused messaging.

"Institutional, electronic trading is rife with competing interests that leave buy-side firms disadvantaged by their very own broker relationships," said EdgeTrade President, Kyle Zasky. "EdgeTrade has an important message to convey to these traders: when you do business with us the advantage is yours."

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Hedge fund returns falling and unlikely to bounce back soon

January 16, 2006

From MoneyManagement.com.au:
Returns from hedge funds have declined over the past five years and are not expected to return to levels seen in the 1990s in the short-term, despite optimism from hedge fund managers.

Most managers are forecasting returns from hedge funds in the range of 0 to 5 per cent above cash in the next 12 months, but believe longer term returns will reach targets of 5 to 10 per cent above cash, according to a survey conducted by Mercer Human Resources Consulting late last year.

However, Mercer analysts claim managers are adjusting to lower returns in the current environment and are unlikely to achieve levels of returns seen in previous years in the near future.

Fee increases were also forecast by the majority of respondents to the survey of 17 leading fund of hedge fund managers, partly to offset higher compliance and organizational costs.

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HEDGE FUND RISK AND OTHER DISCLOSURES

Hedge funds, including fund of funds (“Hedge Funds”), are unregistered private investment partnerships, funds or pools that may invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives) and are NOT subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in Hedge Funds. Persons interested in investing in Hedge Funds should carefully note the following:

Hedge Funds represent speculative investments and involve a high degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in a Hedge Fund.
An investment in a Hedge Fund should be discretionary capital set aside strictly for speculative purposes.
An investment in a Hedge Fund is not suitable or desirable for all investors. Only qualified eligible investors may invest in Hedge Funds.
Hedge Fund offering documents are not reviewed or approved by federal or state regulators
Hedge Funds may be leveraged (including highly leveraged) and a Hedge Fund’s performance may be volatile
An investment in a Hedge Fund may be illiquid and there may be significant restrictions on transferring interests in a Hedge Fund. There is no secondary market for an investor’s investment in a Hedge Fund and none is expected to develop.
A Hedge Fund may have little or no operating history or performance and may use hypothetical or pro forma performance which may not reflect actual trading done by the manager or advisor and should be reviewed carefully. Investors should not place undue reliance on hypothetical or pro forma performance.
A Hedge Fund’s manager or advisor has total trading authority over the Hedge Fund.
A Hedge Fund may use a single advisor or employ a single strategy, which could mean a lack of diversification and higher risk.
A Hedge Fund (for example, a fund of funds) and its managers or advisors may rely on the trading expertise and experience of third-party managers or advisors, the identity of which may not be disclosed to investors
A Hedge Fund may involve a complex tax structure, which should be reviewed carefully.
A Hedge Fund may involve structures or strategies that may cause delays in important tax information being sent to investors.
A Hedge Fund may provide no transparency regarding its underlying investments (including sub-funds in a fund of funds structure) to investors. If this is the case, there will be no way for an investor to monitor the specific investments made by the Hedge Fund or, in a fund of funds structure, to know whether the sub-fund investments are consistent with the Hedge Fund’s investment strategy or risk levels.
A Hedge Fund may execute a substantial portion of trades on foreign exchanges or over-the-counter markets, which could mean higher risk.
A Hedge Fund’s fees and expenses-which may be substantial regardless of any positive return- will offset the Hedge Fund’s trading profits. In a fund of funds or similar structure, fees are generally charged at the fund as well as the sub-fund levels; therefore fees charged investors will be higher that those charged if the investor invested directly in the sub-fund(s).
Hedge Funds are not required to provide periodic pricing or valuation information to investors.
Hedge Funds and their managers/advisors may be subject to various conflicts of interest.

The above general summary is not a complete list of the risks and other important disclosures involved in investing in Hedge Funds and, with respect to any particular Hedge Fund, is subject to the more complete and specific disclosures contained in such Hedge Fund’s respective offering documents. Before making any investment, an investor should thoroughly review a Hedge Fund’s offering documents with the investor’s financial, legal and tax advisor to determine whether an investment in the Hedge Fund is suitable for the investor in light of the investor’s investment objectives, financial circumstances and tax situation.

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The information on this Site is as of the date(s) indicated, is not a complete description of any fund, and is subject to the more complete disclosures and terms and conditions contained in a particular fund's offering documents, which may be obtained directly from the fund. Certain of the information, including investment returns, valuations, fund targets and strategies, has been supplied by the funds or their agents, and other third parties, and although believed to be reliable, has not been independently verified and its completeness and accuracy cannot be guaranteed. No warranty, express or implied, representation or guarantee is made as to the accuracy, validity, timeliness, completeness or suitability of this information.

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