Leda Braga's hedge fund pulls in new money

Leda Braga

Systematica’s external assets were $ 7.8 billion when it spun out of Mike Platt’s BlueCrest and have since risen to $ 10.2 billion, according to the firm.

Its overall assets at launch were $ 8.4 billion. This included the $ 600 million BlueCrest AllBlue, which was managed on behalf of BlueCrest Capital Management, and whose assets were returned to investors when Platt converted his hedge fund into a family office at the end of 2015.

Investors have allocated money to Braga’s flagship systematic hedge fund BlueTrend and other, newer funds in recent months. BlueTrend trades more than 150 markets across equities, bonds, commodities, interest rates and currencies, and its algorithms make investment decisions based on price movements they detect in markets.

The performance of BlueTrend has also helped boost assets under management. The fund has returned 3.1% year-to-date, with a negative correlation of 47% to the MSCI World index to the end of July, the latest period for which this number has been calculated, according to performance data seen by Financial News. In 2015 the fund returned 3.4%.

This negative correlation to the wider market makes the fund more attractive to investors looking to diversify their portfolios.

Braga referred to the asset increase as a “vote of confidence” in the strategy and attributed the fund’s performance to the way that systematic strategies are able to trade difficult markets.

She added: “The world is learning the value of data-driven activities through science and technology. I can imagine in a few years’ time calling a self-driven cab – it will be reliable and cost-effective. Investment management is one of the most data-driven activities there are. It is the perfect ground for the systematic approach.”

The inflows into Braga’s hedge fund come as investors grow impatient with the industry as a whole. Investors withdrew $ 55.9 billion from hedge funds globally in 2016 to the end of July, according to eVestment. In July alone they pulled a net $ 25.2 billion, making it the toughest month for hedge funds since February 2009.

In recent months, even high-profile hedge funds like Brevan Howard and Odey Asset Management have suffered large redemptions.

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