Quant Macro Trading

BHC’s quantitative macro trading strategies have been trusted by some of the world’s largest institutional investors. The objective of quantitative macro trading is to generate absolute returns that diversify traditional stock and bond holdings. Our approach is to focus on drawdown control, and to seek profit from significant market responses to macro themes. In 2013, BHC was the recipient of the Hedge Funds Review Americas: Best Overall Canadian Hedge Fund Award* for our quant macro strategy. The following points are key components of our macro investing philosophy:
 

Micro Alpha

  • Align top-down technical trends with bottom-up fundamentals
  • Apply quantitative methods to gain an analysis edge

Trade Structuring

  • Make active decisions on how to implement quantitative signals to improve risk/reward
  • Actively use a full suite of investment tools, including forwards, futures, and option structures
  • Experienced portfolio managers are necessary to effectively deploy leading edge quantitative models

Risk Management

  • Focus on drawdown, not just volatility, to create an asymmetric return profile
  • Be patient and seek profit from episodic tail events

Broad Universe

  • Asset class coverage across commodities, cash equities, global rates, and currencies
  • Have a meaningful allocation to diversifying asset classes such as commodities

 

*Hedge Funds Review and BarclayHedge have partnered to recognize the best hedge funds and fund of funds in the US, Canada, and Latin America with the Hedge Funds Review Americas Award. Funds that meet the qualification criteria and have top quartile returns in their category are ranked based on returns, Sharpe ratio, and downside deviation with winning funds being selected based on the quantitative analysis as well as qualitative experience and expertise. Advisors were selected from contributors to the BarclayHedge database. No fee was paid for participation. Awards are for information purposes only and should not be construed as an endorsement of BHC, its affiliates or its products. Awards are not indicative, representative or a guarantee of future performance and any investor’s experience with BHC.