BUFFALO GROVE, Ill. (HegdeWorld.com)–After spending seven years exclusively running managed futures programs, Chung Capital Management decided to dip its toes in hedge fund waters.
“We’re systematic trendfollowers, but the trading systems and models we build can be applied to equities as well as futures,” said Vincent Chung, firm principal. “We have been researching and testing our models for years to include equities, but it was only recently that we put it to work.”
The new equity portfolio was constructed in managed account form for a single high-net-worth client. The equity portfolio makes trades based on technical signals generated by Chung’s market models, which were originally created based on research for the managed futures side. The original models have been in development since 1991.
“It’s not a true hedge fund in the sense that it is not always market neutral or equally weighted on the long and short side–but it could be,” Mr. Chung said. “And, obviously, the approach is technical rather than fundamental.”
The equity strategy is not available in a pooled-fund format, although it might be in the not-so-distant future, Mr. Chung said. The commodities trading adviser said that his research might also be applied to trading single-stock futures at some point.