Alpha capture strategies take inputs from sources like human traders, market data, sell-side research, and more and then use a systematic process to create a portfolio that is efficiently sized and hedged.
CenterBook uses trading data from dozens of external firms to create its portfolios, while Norias will create its book off the ideas of its fundamental analysts.
Meanwhile, Man Group is building out an alpha capture team within its AHL unit's special strategies team, a recent job posting states, and Squarepoint is doubling its team, finding external managers for its buy-side alpha capture program.
"It is a way for them to increase their capacity and take in more assets," said Kevin Lyons, senior investment manager at Abrdn, about the largest platforms growing their internal alpha capture capabilities.
AdvertisementThe alpha capture OGIt can all be tied back to the success of the original mainstream alpha capture strategy: Marshall Wace's TOPS, which stands for Trade Optimized Portfolio System.
Persons:
—, Marshall Wace, Doug Haynes, Norias, Basil Qunibi, Squarepoint quant Warren Touwen, Merrill Lynch, Squarepoint, Touwen, Kevin Lyons, Marshall, Anthony Clarke, Cameron Hight, Hight, it's, headhunter
Organizations:
Service, Business, CenterBook Partners, Research, Investors, AHL, TOPS
Locations:
Austin, Abrdn, London