Growth Creek, a New York-based quant hedge fund, has surprised analysts with a stronger than expected Q3 earnings report that showed it gained a massive 20% against the Dow Jones Industrial Average.
In a recent conference call with investors, Managing Director Blake Davis stated that the firm’s “investment approach integrates stringent risk management strategies while methodically identifying catalysts for growth, value-oriented opportunities, and transformative impact. The fact that this impressive run occurred during an extremely bearish time for the market “is a testament to our rigorously disciplined approach to risk allocation and the dynamic methodology utilised by our proprietary in-house model”.
Self-styled as an alternative investment firm, Growth Creek has leveraged its consistent run of success with an eye towards global expansion, having recently opened up operations in Africa and Southeast Asia.
According to South Africa Managing Partner Wouter Ellis: “There is exponential growth to be made in our country and an untapped market for our product offerings. There is a huge need for financial education here, and we truly feel that is the market need we are definitively addressing. We are not your run-of-the-mill investment firm, and we are bringing a wealth of experience and technical acumen into the region”.
The key differentiator to its business philosophy “is plain and simple transparency”, adds Paul Nuqui, Southeast Asia Managing Partner. “Wall Street and hedge funds in general have skewed the perception of profits as is – the reality is that the typical margins on top end asset management are astronomically high, but only a fraction of this ever goes to the investor and much of it is retained by the firm. We aim to democratise the trading process by giving back as much profit and flexibility to our clients as we can, and we consider this a key driver towards our success.”
