Algorithmic currency trading firm Leman Capital Management delivered a robust first-half performance, reporting a 34.6% return for the first six months of 2016.
This marked a continuation of a strong trend that reflected the successful application of the company’s Quant Fund currency trading strategies. The company had set record profits in 2015, earning a 62% return. This outpaced 99 percent of quantitative asset management firms for the third consecutive year and at a time when most funds lost money.
This trend has continued into 2016, with June marking the six consecutive month of positive performance with a 7.06% return. Over the course of the year, the return has averaged 5.77% per month, compared with an average 5.22% per month over 2015. The firm generated consistent strong risk-adjusted returns across a range of market conditions. Over the six months, assets under management increased to $89.5m, rising an impressive 58.97 percent from $56.3m, as of January 3rd, 2016.
Maximal monthly drawdown for the period was under 3 percent, indicating the quality of the algorithmic trading combined with quantitative analysis to deliver consistent low-risk outperformance.
The approach of the firm applies complex mathematical and statistical methodologies to assess and calibrate a wealth of financial data based on past and present market performance. It filters out underlying trading patterns and takes advantage of market anomalies, opportunities less sophisticated participants might miss.
The computer algorithms used provide optimal investment decisions that are devoid of the human biases and emotions inherent in pure fundamental research strategies. This technology also enables the process of decision making to be significantly faster than those practised by individuals. This element has been particularly important in market timing of trades within the volatile trading environment investors have faced this year.
Even in challenging market conditions, Leman managed to generate positive returns, thanks to the quality of its proprietary models, designed to forecast investment opportunities in different trading environments.
Looking ahead, Leman believes it is essential to continue to invest in technology to improve its capability, performance and the delivery of high-speed execution. Successful strategies have a limited lifespan before market forces erode opportunities. As a result, there is a constant need to evolve the platform in response to increasing amount of noise in a fast-changing market.
To stay ahead of the challenge, the firm has committed to build and refine effective quantitative trading systems with genuine predictive powers of future market trends. The firm’s track record of creating strategies that can operate across market cycles has enabled it to perform strongly in a competitive universe of hedge funds, where even smaller quants can leverage technology to outperform.
At the forefront of its comprehensive approach to technology, Leman is investing in a range of initiatives to support its machine learning-based trading strategies and the infrastructure required to support them. This includes continuous development of proprietary modeling and trading software, and refining its quantitative risk management framework with human review and oversight.
To remain at the cutting edge of the industry, innovation is ongoing for the firm’s FX Wave trading platform, one of the most complex algorithmic trading platforms in the currency trading arena that is capable of correctly aligning and successfully executing up to 300 FX trades per day. FX Wave Version 3 is in the final phase of testing and should be launched by early 2017. This should improve the firm’s capabilities in predictive modeling by leveraging the technology of deep learning.
Maintaining high-quality strategy output remains a key principle for Leman. Achieving this has enabled the firm to produce consistently strong returns and rank as one of most promising alternative investment managers for 2016.
About Leman Capital
Leman Corporation is headquartered in London, United Kingdom and is the parent company of BVI-based investment manager Leman Capital Management. As of July 1, 2016, Leman Capital Management Ltd. manages over US $89 million on behalf of more than 400 clients across the world.
Leman Capital is prudently exploring tomorrow's opportunities today using machine learning, distributed computing and many other technologies that work with tremendous amounts of data from hundreds of different data sources.
Leman's investment approach is designed as a combination of a proven technology platform, stringent fundamental research and advanced quantitative analysis.
Company: Leman Capital Management
Address: London, United Kingdom