Most systematic equity trading strategies use “black box” approaches or may utilize High or Ultra High Frequency Trading. Many of them can be illiquid because of over-reliance on small-caps or alpha generation constraints due to fund size.
Los Angeles, CA (PRWEB) June 26, 2013
Walter Vester of Huygens Capital headlined the Ivy Family Office Los Angeles, CA Mid-Year Outlook Forum with a discussion on “Non Correlated Investing”. The Forum was held on June 18th in Los Angeles, CA.
According to Mr. Vester, “Most systematic equity trading strategies use 'black box' approaches or may utilize High or Ultra High Frequency Trading. Often, these funds and their structures limit client access to their capital or have limited transparency into the underlying portfolios. Many of them can be illiquid because of over-reliance on small-caps and resultant alpha generation is constrained by fund size.”
“However, investors can get equity exposure while controlling tail risk and avoiding these drawbacks using a different type of systematic, non-correlated strategy. It is possible to do this with quantitative methods that utilize indicators designed to manage overall exposure to volatility. These low-frequency trading strategies can be implemented using highly liquid ETFs, giving clients transparency and liquidity, while maintaining the potential for high capacity. This type of strategy can act as a dynamic hedge - it can be designed to introduce negative correlation into a client’s portfolio when market volatility is high and rising, benefiting the portfolio’s total returns and reducing its volatility.”
Walter Vester, Chief Executive Officer of Huygens Capital, combines years of fundamental equity investing with hands-on experience in system design for stochastic control. He was most recently a Managing Director in Blackstone’s Private Equity group, and was an equity research analyst at AllianceBernstein before that. Early in his career, Walter designed algorithms for secure digital communication systems in Harris Corp.’s Advanced Communication Systems Group. He has multiple US & UK patents.
He attended Rensselaer Polytechnic Institute earning a Bachelor of Science in Computer and Systems engineering; he also has a Masters of Science in Applied Physics and Electrical Engineering from Case Western Reserve, and an MBA in finance from the Wharton School of the University of Pennsylvania.
Other speakers on the panel included Alan Snyder of Shinnecock Partners and Les Allan of the Los Angeles Investment Company.
The Ivy Family Office Network Forum provides an ongoing dialogue for family offices to support high-value education and information on trends for family office investing, structure and operational excellence. Attendees gain practical strategies and solutions to achieve both short and long-term objectives. The program features off-the-record, peer-to-peer discussions in a non-commercial setting, in-depth and highly interactive sessions.
About The Ivy Family Office Network
The Ivy Family Office Network, IvyFON, is a leading peer to peer global family office network with several hundred family offices attending their events around The Americas within the past 12 months. Some of the more than 1,200 past speakers have included 5 of the top 10 largest asset allocating consultancies, pre-eminent alternative investment funds by return, leading institutional investors by size, best-in-class asset management professionals, family office subject matter experts and world-class family offices.
Premier Speakers have included Ron Baron, Fred Nazem, Steve Prostano, John Taylor and many others. Forum sessions are multi-format and cross-disciplinary covering a range of family office centric topics.
IvyFON’s expertise is an outgrowth of one of the United States’ oldest and largest alternative investment networks, the IvyPlus network. IvyPlus originated as a peer to peer private equity, real estate and hedge fund network consisting of Ivy League and comparable school alumni as well as meritorious participants in the program. Additionally, the group supports deal networks across multiple disciplines including private equity and real estate. More than 10,000 investment, family office and institutional investment professionals have attended forums globally. For more information on the Ivy Family Office Network, go to ivyfon.com/contact.html.
For more information on Huygens Capital contact Walt Vester at wvester(at)huygenscapital(dot)com.