Schonfeld Strategic Advisors is expanding its investment product lineup with the launch of the Schonfeld Systematic Alpha Fund, a new hedge fund designed to provide investors with direct access to the firm’s quantitative trading teams.
The report cites unnamed sources familiar with the matter as revealing that the fund, which began trading on Tuesday, has already secured more than $300m in commitments from existing and new investors, with Schonfeld aiming to raise $1bn for the strategy within the next 12 to 18 months.
This latest offering aligns with Schonfeld’s strategy of diversifying its product suite. The firm, led by Ryan Tolkin, already manages the $2bn Fundamental Equity Fund, which grants investors exposure to its equity trading teams. The Systematic Alpha Fund will specifically support quantitative trading teams, allowing them to scale their strategies and attract additional capital.
Unlike many multi-strategy hedge funds that consolidate their investment approaches into a single flagship vehicle, firms such as DE Shaw & Co and Qube Research & Technologies have adopted a more tailored model by offering multiple funds with distinct investment focuses. Schonfeld is now following suit by providing investors with more precise access to its quantitative trading expertise.
Schonfeld has a long history in quantitative trading, which represents the largest strategy in its $10bn Strategic Partners Fund, accounting for up to 40% of its risk allocation. The firm also deploys capital across fundamental equity long/short, tactical trading, discretionary macro, and fixed-income strategies.
In addition to the new Systematic Alpha Fund, Schonfeld has also structured a Portable Alpha strategy for a key investor. This approach uses derivatives to replicate long-only index returns while allocating excess capital to hedge fund strategies such as trend-following and market-neutral equity trading.
With approximately $13 billion in external client capital under management, New York-based Schonfeld has demonstrated strong performance. Its Strategic Partners Fund posted a near 20% return in 2023, while the Schonfeld Fundamental Equity Fund delivered a 21% gain, according to Bloomberg.
A spokesperson for Schonfeld declined to comment on the new fund launch.
