Archive for January, 2017

Madrague and Sector Nordic winners at Eurohedge Awards

Stockholm (HedgeNordic) – From an early nomination list of 16 Nordic names, two funds were announced as winners at this year´s Eurohedge Awards; Madrague Equity Long/Short and Sector Healthcare.

Stockholm-based Madrague’s long/short equity fund was awarded best European Equity Fund among funds managing AuM up to 500 million USD for its performance in 2016. According to HedgeNordic data, the fund gained 15.1 percent for the full year translating into a compounded RoR of 9.4 percent and a Sharpe Ratio of 1.1 since its inception in February 2012.

Oslo-based Sector was awarded best specialist equity fund for its Sector Healthcare fund. The fund gained 10.6 percent in 2016 and has had a compounded RoR of 8.6 percent and a Sharpe Ratio of 1.9 since launching in September 2005, according to HedgeNordic data.

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PriorNilsson Yield awarded best HF 2016 by Fondmarknaden

Stockholm (HedgeNordic) – PriorNilsson’s long/short equity hedge fund Yield has been awarded “hedge fund of the year” by Swedish fund platform Fondmarknaden. The award was handed out at an event in Stockholm on Wednesday, January 11, 2017. On top of being named best hedge fund, PriorNilsson received the award as best Swedish-focused fund with PriorNilsson Realinvest A and was also named “fund management company of the year”.

Fondmarknaden gives the hedge fund award to PriorNilsson with the following motivation:

“The fund has significantly outperformed its category peer group in 2016 and is a clear example of active management at its best. The fund, which builds on fundamental analysis of companies within specific sectors, has been managed successfully without sacrificing the diversification aspects of portfolio management.”

According to Fondmarknaden, PriorNilsson Yield has delivered an average return over the last 36 months of 22.6 percent  to a standard deviation of 11.8 percent, translating into a Sharpe Ratio of 1.78.

Since its inception in 2002, PriorNilsson Yield has delivered a compounded ROR of  4.35 to a Sharpe Ratio of 1.23, according to HedgeNordic data.

Efficient Capital Management, LLC has a well-defined focus on delivering the unique benefits of non-directional and leveragable trading strategies to institutional investors.

Our History

Efficient Capital Management® was formed on May 1, 1999. The founders share a strong conviction that their combined experience and proprietary evaluation and risk management tools provide the foundation for industry leading Multi-Manager product design and portfolio management.

The key to any business is the character and the combined strengths of the people involved. Eleven industry professionals came together with the common goal of establishing an industry-leading Multi-Manager portfolio management firm that specializes in providing the unique and beneficial attributes of trading in cash-efficient and liquid markets.

Four of our founders were also founding partners in some of the most successful and innovative trading firms ever to trade futures, options and stock:

  • Chicago Research & Trading Group
  • Hull Trading Company, LLC
  • The Philip Group of Companies
  • Saliba Partners, Inc.

Efficient Capital Management® has grown to a team of over 40 full-time professionals and directs the nominal allocation of over US $2 Billion in assets as of December 1, 2011. The dedication, commitment, and focus have remained unchanged.

Our Objectives

To assemble portfolios of Managers that target specific investment return objectives while controlling the volatility and downside risk so as to maximize the adjusted rate of return.

To consistently achieve a substantial reduction in the volatility of a combined portfolio of Managers as compared to the volatility of any individual Manager.

To actively manage portfolios to ensure that the investment objectives are continuously addressed and the commensurate risks constantly monitored.

To assist institutional investors in the maximization of portfolio efficiencies through the use of non-directional, non-correlated, alpha-generating trading strategies.

Our Process

Efficient Capital Management® specializes in Multi-Manager portfolio design and management business. A highly quantitative, proprietary approach is used to select and monitor portfolios. Proprietary tools have been developed to statistically measure volatility, return, and drawdown expectations across various time-frames. Daily return data is utilized for evaluation purposes and multiple proprietary correlation models are used to assist in achieving significant composite volatility reductions. These mathematical models consider correlations from various perspectives with an emphasis on “stressed” market environments. A parallel back-office updates all positions and portfolio adjustments intra-day. Traders and their positions are continuously monitored against expectations for risk and profit.

Our Portfolio Attributes

Because Efficient Capital Management® exclusively utilizes regulated, exchange-traded instruments and inter-bank foreign exchange, several critical management/portfolio benefits accrue for our investors:

Continuous position and risk transparency.

Daily liquidity.

The ability to adjust the exposure to individual trading strategies to optimize risk-adjusted return.

The ability to target specific investment objectives by efficiently adjusting exposure to the composite performance.

“Non-directional” trading strategies that can potentially benefit during declining stock and bond markets.

Diversification strategies, that when added to other investments, often reduce the composite risk.

Our Multi-Manager Selection

The Efficient Capital Management® Manager selection process includes a number of essential requirements. A few examples are:

The Manager must have the proper character, background, experience and business structure.

The trading methodology must be logical, reasonable, and sound.

The statistical expectations of return, volatility of returns, and risk control must qualify the manager as “stand alone” investment grade.

The correlation relative to other Managers must evidence unique portfolio benefits over time… especially in stressed global market conditions.

The Manager must meet rigorous minimum statistical benchmarks.