Niederhoffer's Computer Driven Algos Score BIG!

[marketsurfer]

http://www.wsj.com/articles/computer-driven-automatic-trading-strategies-score-big-1423184155

Recent market volatility caught many investors flat-footed. Among the few winners were traders who let a computer be their guide.

Hedge-fund managers who employ complicated, automatic-trading strategies made millions off the wild swings in currency and commodity markets in recent weeks, investors said.

Many of these so-called quants——including Leda Braga’s BlueTrend fund, Cantab Capital Partners LLP and R.G. Niederhoffer...

 

[Jerry030]

Anyone using real data science as in predictive analytics to model market behaviour? Note this does not involve an algo magic formula.

 

[samuel11]

It reminds me of what I learned in school: fund managers tend to perform well after they faced large redemptions.

 

[blakpacman]

Remember about a year ago people were talking about the death of trend following funds? And John Henry stopped managing client money at the end of 2012.
http://www.wsj.com/articles/SB10001424127887323894704578109034136385080

 

[i am nobody]

If you would have been a client from Niederhoffer the last 10 years, you would have been already a few times millionaire, but you would have ended each time broke probably. How many times did Niederhoffer already blow up?

 

[d08]

Exactly, it's the long term record that matters. Anyone can be the best for a few months. He will fleece the investors once more, not that I blame him - suckers and their money.

 

[jeb9999]

If you would have been a client from Niederhoffer the last 10 years, you would have been already a few times millionaire, but you would have ended each time broke probably. How many times did Niederhoffer already blow up?

I know this will be very difficult for you to comprehend, but there is more than one person named Niederhoffer in the world.

R.G. Niederhoffer hasn't blown up.

 

[jeb9999]

Exactly, it's the long term record that matters. Anyone can be the best for a few months. He will fleece the investors once more, not that I blame him - suckers and their money.

Wow, another one of those people that know there is only one person named Niederhoffer in the world.

R.G. Niederhoffer hasn't fleeced anyone.

 

[d08]

Wow, another one of those people that know there is only one person named Niederhoffer in the world.

R.G. Niederhoffer hasn't fleeced anyone.

You're right, a ridiculous error made by myself. I guess seeing MS as the thread author made me jump the gun

 

[Humpy]

Must have a better algo than Density

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LONDON (Reuters) Sweden-based hedge fund Density is to close after a poor performance, its manager told Reuters on Tuesday [Oct. 8], as computer-driven funds struggle to cope with markets dominated by central bank money-printing.
Density's troubles reflect those of high-profile computer-driven (also known as commodity-trading advisor or CTA) funds such as BlueCrest's BlueTrend, Man Group's AHL and Cantab Capital's CCP fund, which have also suffered losses as central bank actions disrupt the long-running market trends they like to follow.
The Density fund, which traded 138 markets in stocks, fixed income, currencies and commodities, had been run as a strategy in Swedish-based Brummer & Partners' Nektar unit, which manages the $4.7 billion Nektar fund, a portfolio that has made money every calendar year since 1998 apart from in 2008.
Density launched on its own in 2008 and made large profits around the time of Lehman Brothers' collapse. But the portfolio, which grew to around $54 million in size, has struggled in recent years, losing 14.9 percent in the first nine months of this year.
"Performance has not been what we hoped for," Jonas Vikstrom, managing director of Vikstrom & Andersson Asset Management and co-manager of the Density fund, told Reuters. "It's been quite bad actually.
"We aim for a niche in the CTA space but it's not worked out well at all ... We don't have the resources to continue fighting," Vikstrom said.
Since the end of 2008 the Density fund has fallen around 26.6 percent, according to a fund fact sheet seen by Reuters.
In a letter to investors seen by Reuters, Vikstrom said the fund would close by the end of the month.