That dozens of funds — the firm currently has 28 different partner funds that feed data into the strategy plus a waitlist of five other managers — would share their holdings is novel.
The average hedge fund was up 7.5%, according to Hedge Fund Research.
The managers who have partnered with CenterBook, Stemerman said, have a long time horizon — think months instead of days — on their trades, so the edge isn't lost if CenterBook also makes the same trade in its book.
CenterBook, if assets grow as expected, aims to bring on another 10 partner funds this year, the source close to management tells Business Insider.
While the manager has only 18 full-time employees, its partner funds have more than 100 investment analysts working at them.
Persons:
David Stemerman, Steve Mandel's Lone, Conatus, CenterBook, Stemerman, —, tearsheet, hadn't
Organizations:
Business, Connecticut's, Alpha, CenterBook, Global Alpha, Fund, Citadel, Apple
Locations:
Charlotte, Lone