29 Oct 2010
Dighton Capital Management has announced that due to considerable uncertainty in the markets, all of the group’s assets under management are now in cash. The company has three funds with annualised returns of 45.2%, 17.6% and 24.7%.
Dighton Capital Management was established in 2003 and currently manages three funds. AUM are in excess of $230 million. It has offices in the United States, Switzerland and the Cayman Islands.
In terms of the long term view on the global economy, Dighton Capital Management believes that there will be very little long term growth. The view is that equity markets will be trading sideways, dominated by significant volatility within that bandwidth. The long term view on commodities remains bullish, but in the short term there is still significant trading risk.
Dighton Capital Management says that the increased volatility in the markets should fuel strong growth in demand for managed futures because they benefit from this environment as they can deliver attractive returns whether the markets are rising or falling.
However, Dighton Capital Management warns that investors need to choose their CTA manager (Managed Futures manager) carefully because the quality varies considerably. Indeed, the company’s Dynamic Allocation MSP scans some 1,200 CTAs, and invests in only around 20. When selecting a CTA, investors should consider a number of features including the length of their track record, their annualised return, Sharpe Ratio and Margin to Equity ratio. You should also look at the consistency of their volatility, the shape of their drawdown and recoveries and their investment and risk management procedures.
Dighton offers two investment programmes at present based on Managed Futures. The first is offered through the Dighton Balanced and Dighton Aggressive Segregated Portfolio (ASP). The second program is the Dighton Dynamic Allocation MSP. Dighton’s products are domiciled in the Cayman Islands.
The Dighton Aggressive Segregated Portfolio (ASP) is a discretionary CTA which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The strategy is developed by Mr. A. Moisseev who has been a Futures trader since 1992. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), volume and Time cycles. The Fund manager trades on high conviction and his tight selection standards reject 9 out of 10 trading ideas. The fund aims to achieve +50% annualized performance.
The Dighton Balanced Portfolio (Dighton Balanced) is a discretionary CTA which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), volume and Time cycles. The fund aims to achieve +20% annualized performance with a volatility of 15%.
Dighton Capital Management was established in 2003 and currently manages three funds. AUM are in excess of $230 million. It has offices in the United States, Switzerland and the Cayman Islands.
Alex Moiseev, Principal and Chief Investment Officer, Dighton Capital Management said: “There is so much uncertainty in the markets at the moment that the risk/reward trade-off is unattractive. We therefore feel that until we have a clearer picture on what is likely to happen in the FX markets for example, and also greater clarity on the economic policies of some G20 countries, it is better to be in cash than other asset classes at the moment. In such circumstances, we prefer to stay on the sidelines and await clear opportunities. This approach has delivered great returns for us, especially in 2008 when the crisis really started to hit.
“We are closely monitoring the markets for new signals, especially with regards to the US dollar and bonds. We expect to have a much clearer picture of the environment in the next few weeks and will be in a better position to take advantage of the irrationality that has entered the markets.”
In terms of the long term view on the global economy, Dighton Capital Management believes that there will be very little long term growth. The view is that equity markets will be trading sideways, dominated by significant volatility within that bandwidth. The long term view on commodities remains bullish, but in the short term there is still significant trading risk.
Alex Moiseev said: “One of the major factors holding back global growth is that there is so much government money in some large corporates and the economy as a whole, it is stifling entrepreneurialism. In some ways the free economies have turned into socialist states.”
Dighton Capital Management says that the increased volatility in the markets should fuel strong growth in demand for managed futures because they benefit from this environment as they can deliver attractive returns whether the markets are rising or falling.
However, Dighton Capital Management warns that investors need to choose their CTA manager (Managed Futures manager) carefully because the quality varies considerably. Indeed, the company’s Dynamic Allocation MSP scans some 1,200 CTAs, and invests in only around 20. When selecting a CTA, investors should consider a number of features including the length of their track record, their annualised return, Sharpe Ratio and Margin to Equity ratio. You should also look at the consistency of their volatility, the shape of their drawdown and recoveries and their investment and risk management procedures.
Dighton offers two investment programmes at present based on Managed Futures. The first is offered through the Dighton Balanced and Dighton Aggressive Segregated Portfolio (ASP). The second program is the Dighton Dynamic Allocation MSP. Dighton’s products are domiciled in the Cayman Islands.
The Dighton Aggressive Segregated Portfolio (ASP) is a discretionary CTA which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The strategy is developed by Mr. A. Moisseev who has been a Futures trader since 1992. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), volume and Time cycles. The Fund manager trades on high conviction and his tight selection standards reject 9 out of 10 trading ideas. The fund aims to achieve +50% annualized performance.
The Dighton Balanced Portfolio (Dighton Balanced) is a discretionary CTA which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), volume and Time cycles. The fund aims to achieve +20% annualized performance with a volatility of 15%.
