NUMERI Capital Management has launched a new alternative investment program – NUMERI Intraday I – which aims to provide institutional and retail investors with superior risk-adjusted returns, regardless of the direction of traditional markets.
Using proprietary intraday forecasting techniques developed and refined by the principals in live trading of their own accounts over the past decade, the program systematically exploits temporary mis-pricings in the equity and fixed income markets each day. As with any investment, there is a risk of loss trading the program.
Scott Andrews, co-founder and President of the firm, says: “The limitations of traditional portfolio diversification are well documented. With the markets near all-time highs, interest in our short duration strategy, that is designed to take advantage of volatility and could help shield portfolios from the next correction, has been high.”
David Skowron, co-founder and VP of Portfolio Management and Execution, adds: “Investor emotions and mis-pricings are often greatest when the financial markets are under pressure. As a result, NUMERI typically performs best when traditional investments are performing the worst. In addition, we avoid overnight ‘gap’ risk which can result in outsized losses and lead to disappointing results like those experienced by many commodity trading advisors and funds this year.”
Year to date, the NUMERI program is up about 6.5 per cent (net), while maintaining low volatility and correlation with long-only equity investments. Past performance is not necessarily indicative of future results.
Daniel Egger, Director of the Duke University Center for Quantitative Modeling, says: “Having worked closely with Scott and David over the past 20 years at their first company, SciQuest, and now as a Director, shareholder, and client of NUMERI, I am a believer in the team and in the trading methodology. With many catalysts for increased market volatility looming and the likelihood of the next big correction coming sooner than later, I believe NUMERI is well positioned to act as an effective hedge against downside equity risk and outperform equities on a risk-adjusted basis over the next two to three years.”
The NUMERI Intraday Program is available via separately managed accounts which provide access and transparency on a daily basis. Andrews says: “While we hope clients will entrust us to manage a portion of their portfolios for the long term, we realise that many prefer the convenience and peace of mind of separately managed accounts.”
