Orso Capital Management plans to launch the Quadrant Plus Partners Strategy, an equity hedge fund that seeks long-term growth.
Andrew Lydon, who founded the fund in March 2013 and is chief executive officer and chief investment officer, has 11 years of portfolio management expertise and has successfully launched two other hedge funds.
“The Quadrant Plus Partners strategy is driven by technical analysis and a proprietary mathematical formula that first identifies the current market environment,” says Lydon. “The strategy then seeks to create alpha by adjusting the portfolio’s exposure to take advantage of opportunities within those environments. The portfolio’s beta is similar to the S&P 500, but the Sharpe Ratio is more favourable, thus making the systematic risk mathematically justified.”
The strategy has a proven back-tested performance history from 2000 to 2012, attested to by the accounting firm of Halpern & Associates,. The strategy has produced superior performance in up and down markets.
The strategy invests only in constituent stocks in the S&P 500 and the Russell 2000 indices.
“We chose our firm’s name, Orso, which means 'bear' in Italian, because of the strategy’s ability to succeed even in bear markets,” says Lydon. “In order to beat the markets over time you need to create new capital market technologies to look at the markets differently, and to give clients a chance to outperform. We believe we have done that with this strategy, and are excited to bring it to market.
“Fundamental analysis in and of itself is not a predictor of future market movement. We look to take the emotion out of investing by holding dearly to our core beliefs of vigilance, flexibility, and that math never lies.”
Prior to Orso, Lydon was president of Andrew Lydon Consulting from 2006 to 2013, where he specialised in providing analysis, modelling, and due diligence for hedge funds. Previously, he was a regional vice president of Fisher Investments from 2004 to 2006 and chief investment officer of Bull Run from 2002 to 2004.
Opus Fund Services is administrator; ConvergEx Group is prime broker; J.P. Morgan is custodian; and Hirschler Fleischer is legal counsel.