TORONTO (HedgeWorld.com)–A new fund of funds, the Quadrexx Market Neutral Performance Fund, will base its investments on a portfolio management theory developed at the University of Toronto by a team of mathematicians and physicists.
Quadrexx Market Neutral is the first in a series of products to be released from Quadrexx Asset Management Inc.
According to a statement issued by the management company, the method of asset selection has been back-tested to November 1999 and results in a rate of return in excess of 20 percent per annum and a volatility of less than that of a well-designed bond portfolio.
“It won’t be immediately open to U.S. investors but we hope to have products for the U.S. in the near future,” said Miklos Nagy, fund creator and chief executive of the management company. Mr. Nagy also is the founder of Canadian Hedge Watch Inc., Toronto, a publishing and educational firm. He is the co-author, with Peter Beck, of Hedge Funds for Canadians (2003).
The portfolio will be managed by Sigma Analysis & Management Ltd., which was incubated and spun off by the Fields Institute for Research in Mathematical Science, which is affiliated with the University of Toronto. Mr. Nagy described Sigma as “a firm founded by a number of university professors who spent two and a half years developing a proprietary system that would produce positive returns 95% of the time.”
Quadrexx is set to launch on Feb. 26. Its counsel is A.Y. Lesworth Thompson, Toronto. Its administrator is Investor Administrative Solutions, Toronto.