25 Jan 2011
Investment manager BlackCat Capital Partners is looking to forge new ground by seeking Chinese investors for its systematic trading fund. The City of London-based firm is making extended quarterly trips to China and has all of its documentation, investor letters and website information available in Chinese.
Many other hedge funds are targeting Chinese investors but it is unusual for an early stage manager like BlackCat to focus on the country. Though Chinese investors are allocating up to $50 billion per quarter to investment funds, it is difficult for funds off the mainland to access the capital.
BlackCat launched the White Tiger Fund on Jan 4th with $5 million, including $3 million in partners’ capital and additional funds from friends and family contacts. The firm got authorisation from the Financial Services Authority in November.
The firm was founded by Matthew Breakwell and John Reeve, and began investing in April 2008 as a proprietary trading firm. Its audited track record from October 2008 shows only two negative months and none since June 2009. It is also showing a gross compounded annual return of over 60%. The returns from their trading strategy have a low correlation, both within the managed futures/CTA sector and against other asset management classes.
BlackCat develops and applies quantitative trading technology to financial markets and trades using a variety of market‐timing strategies. The approach involves identifying price behaviour inefficiencies and exploiting these via systematic trading. Trading is executed via a proprietary fully automated trading platform.
The portfolio manager uses proprietary trading software that facilitates fully automated trading across a broad range of asset types and the use of a large number of strategies. It operates with mean reversion, liquidity provision and momentum methodologies in a long/short directional trading format.
The time frame of trades ranges from intra-day to long-term with a current average holding of eight hours. It is trading 21 futures markets covering currencies, commodities, fixed income, equity indices and energy. The firm estimates capacity for the strategy of $300 million.
Breakwell spent 15 years managing early-stage companies and has extensive contacts in the British Virgin Islands where the fund is domiciled. Reeve has a background in telecoms and has traded equity and futures markets for over a decade using a systematic approach.
Partner Wei Xia heads BlackCat’s investment research and risk management functions. Previously, Wei worked at two leading managed futures funds.
Bernd Scherer is a non-executive director and chief advisor. Scherer was managing director at Morgan Stanley in London and is now full time professor of finance at EDHEC Business School in London and member of EDHEC Risk.
Many other hedge funds are targeting Chinese investors but it is unusual for an early stage manager like BlackCat to focus on the country. Though Chinese investors are allocating up to $50 billion per quarter to investment funds, it is difficult for funds off the mainland to access the capital.
BlackCat launched the White Tiger Fund on Jan 4th with $5 million, including $3 million in partners’ capital and additional funds from friends and family contacts. The firm got authorisation from the Financial Services Authority in November.
The firm was founded by Matthew Breakwell and John Reeve, and began investing in April 2008 as a proprietary trading firm. Its audited track record from October 2008 shows only two negative months and none since June 2009. It is also showing a gross compounded annual return of over 60%. The returns from their trading strategy have a low correlation, both within the managed futures/CTA sector and against other asset management classes.
BlackCat develops and applies quantitative trading technology to financial markets and trades using a variety of market‐timing strategies. The approach involves identifying price behaviour inefficiencies and exploiting these via systematic trading. Trading is executed via a proprietary fully automated trading platform.
The portfolio manager uses proprietary trading software that facilitates fully automated trading across a broad range of asset types and the use of a large number of strategies. It operates with mean reversion, liquidity provision and momentum methodologies in a long/short directional trading format.
The time frame of trades ranges from intra-day to long-term with a current average holding of eight hours. It is trading 21 futures markets covering currencies, commodities, fixed income, equity indices and energy. The firm estimates capacity for the strategy of $300 million.
Breakwell spent 15 years managing early-stage companies and has extensive contacts in the British Virgin Islands where the fund is domiciled. Reeve has a background in telecoms and has traded equity and futures markets for over a decade using a systematic approach.
Partner Wei Xia heads BlackCat’s investment research and risk management functions. Previously, Wei worked at two leading managed futures funds.
Bernd Scherer is a non-executive director and chief advisor. Scherer was managing director at Morgan Stanley in London and is now full time professor of finance at EDHEC Business School in London and member of EDHEC Risk.
