Quant hedge fund giant Graham Capital brings “novel sources of alpha” to Lombard Odier’s alternatives platform

Quant investing

Graham Capital Management, the long-running US quant hedge fund manager, is launching its multi-asset diversified quant strategy, the Graham Quant Macro fund, on Lombard Odier’s PrivilEdge UCITS fund platform.

The PrivilEdge-Graham Quant Macro fund aims to generate a broad range of diversified returns across market cycles, trading global equity, fixed income, and currency futures on a long/short basis.

The liquid strategy uses four distinct and complementary sub-strategies which build positions using an assortment of price and fundamental macro data, with volatility measures and market correlations used to manage risk and maintain diversification.

Founded in 1994, Connecticut-headquartered Graham manages some USD14 billion in assets, spanning discretionary macro, quantitative macro, and systematic trend-following hedge fund strategies.

“Our Quant Macro strategy has been available to our global institutional clients for nearly six years, providing absolute returns with low correlation to traditional markets and trading strategies,” James Medeiros, CEO of Graham Capital, said. “With Lombard Odier, we can now provide Graham Quant Macro to a broader client base within a much sought-after UCITS format.” 

Lombard Odier’s PrivilEdge fund offers access to an assortment of externally-managed customised fund strategies in a UCITS format, including global unconstrained fixed income, US small-caps, Japanese small and mid-caps, and emerging market fixed income. Established in 2014, it now holds more than CHF4.7 billion (USD5 billion) across 25 funds in total.

Stéphane Monier, CIO of Lombard Odier’s private bank, said the Graham quant macro fund offers investors “novel sources of alpha”, commenting: “Against a backdrop of increasing market volatility, clients are looking to further diversify portfolios through active alternative strategies.”