Atom Investment Co, a new Japan-focused hedge fund firm that only started trading less than a week after the devastating earthquake, was still able to gain 0.9 per cent in March re
Atom Investment Co, a new Japan-focused hedge fund firm that only started trading less than a week after the devastating earthquake, was still able to gain 0.9 per cent in March reported Bloomberg this week. Ex-Goldman Sachs Securities chief derivative trader, Masaru Matsumoto, uses algorithmic modelling to invest in stocks and futures indexes in the Hayate Atom Multi Strategy fund. It launched on March 15th with approximately USD4million in start-up capital and CEO Matsumoto plans on raising around 2 billion yen (USD24million) over the next six months. The fund’s maximum capacity is believed to be ten times’ that figure. The fund looks at roughly 200 highly traded stocks as well as Nikkei and Topix index futures. The portfolio currently holds 50 positions. Matsumoto said that the model used by the fund takes into account “noise” factors that can affect stock prices, in addition to using news and fundamental analysis. Despite the catastrophic events earlier last month, Matsumoto was upbeat on the timing of the launch. “We lowered our risks to adjust to this crisis condition, but our fund depends on a model that eliminates any human emotions, so that has helped in a market like this,” Matsumoto was quoted as saying. He said that the more information the model gathers, “the more accurate the investment picks become”. Some adjustments to the model were made in response to the earthquake, notably reducing utilities and fisheries stocks.