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Getting a fund manager NOT from a big quant shop
Getting a fund manager NOT from a big quant shop
It seems like every new fund comes from somewhere established. In our Lucky 8 for Chinese New Year, we see people from Bridgewater, Cubist, Hutchin Hill, Two Sigma, Tudor. We seem to be missing Millennium/WorldQuant but there are tons of MWQ pups, two newly launched based in Singapore (again the PMs are not Singaporeans – looks like our education system does not churn out PMs but we have plenty of PBs) and seeded by separate US institutional players.
Inspired by the drama series Fauda (which is super awesome and you can catch it on the real Netflix), we are showcasing our find Dogma Capital with their research team based in Israel:
Innovative and engaging algo-trading company, established in 2011 by Former Elite Intelligence units algorithm experts and developers of the IDF.
So what is this IDF which stands for Israeli Defense Forces?
Looks like they come up with apps that can predict enemy rocket launches, and in one project built a system based on neural networks which can extract from a video a suspicious object and describe it in writing.
This makes what Dogma does almost mundane: predict prices of options futures with a modified Black-Scholes model. Well at least that’s what I understand it to be. I only have a math minor and we don’t have to derive mathematical models in investment banking especially with my trusty HP financial calculator.
Dogma recently opened to external investors with net returns of 15.29% in 2017. Doesn’t sound that great compared to the S&P (seriously the S&P would probably be the best performing fund in terms of Sharpe) but lots of option index funds had muted returns because the historical low volatility in the market.
