Horton Point has announced plans to launch a quantitative multi-strategy vehicle in the fourth quarter of 2007.
Horton Point has announced plans to launch a quantitative multi-strategy vehicle in the fourth quarter of 2007. ‘After more than a year of research, our team has completed development of about a dozen viable strategies which are ready for deployment,’ says chief executive Dimitri Sogoloff.
‘We are satisfied that they are stable and sufficiently uncorrelated with one another to justify their inclusion in a multi-strategy portfolio. At this stage we’re focusing on finalizing our risk capital allocation procedures and connecting our production systems to the markets.’
Sogoloff, who co-founded Alexandra Investment Management, a relative value hedge fund manager with more than USD1bn in assets, began looking into quantitative aspects of finance several years ago.
After leaving Alexandra in 2006, he founded Horton Point and joined forces with various quantitative professionals, including Vladimir Finkelstein, the firm’s chief science officer. Finkelstein is a former managing director and head of quantitative credit strategies at Citadel Investment Group in Chicago. He was previously a global head of credit derivatives analytics at Goldman Sachs and a US head of quantitative fixed income at JP Morgan.
Horton Point has a team of 14 including 10 holders of doctorates in areas such as physics, statistical mechanics, plasma, applied mathematics and information technology. Senior portfolio managers have experience in various fields of quant finance, including equities, interest rates, credit derivatives and insurance-related securities.
‘Our business model is a rare combination of serious quantitative power with deep business experience, which holds a high barrier to entry,’ says Sogoloff. ‘We think this is a scalable business which may produce alpha at very high levels of capacity. As institutional investors are seeking scalable alpha combined with a coherent dynamic asset allocation process, a multi-strategy quantitative vehicle is ideally suited to fit that requirement.’
The new fund, named the Gallery Fund after a lighthouse observation gallery, will have a master/feeder structure with both offshore and US domestic feeders. Olympia Capital is the fund administrator and Eisner is the auditor, and the fund is currently negotiating several prime brokerage relationships.