Key Takeaways
- • Graham Capital Management, a USD 14 billion quant hedge fund manager founded in 1994, launched its Graham Quant Macro fund on Lombard Odier's PrivilEdge UCITS platform, expanding access to institutional and retail investors in a regulated fund wrapper.
- • The PrivilEdge-Graham Quant Macro fund employs four complementary sub-strategies trading global equities, fixed income, and currency futures on a long/short basis, using price, fundamental macro data, volatility measures, and correlation analysis to generate diversified absolute returns with low correlation to traditional markets.
- • Lombard Odier's PrivilEdge platform, established in 2014, manages over CHF 4.7 billion (USD 5 billion) across 25 externally-managed customized fund strategies in UCITS format, with the Graham fund addition providing what Lombard Odier's CIO termed "novel sources of alpha" to its alternatives offering.
- • Graham Capital's Quant Macro strategy had been available to global institutional clients for nearly six years prior to the UCITS launch, demonstrating a track record before expanding its distribution through the Lombard Odier partnership.
Summary
Graham Capital Management, the Connecticut-headquartered quantitative hedge fund manager with USD 14 billion in assets under management, launched its diversified quant macro strategy through Lombard Odier's PrivilEdge UCITS fund platform. The partnership expands Graham's reach beyond its traditional institutional investor base to a broader client demographic while maintaining the regulatory accessibility of a UCITS-compliant wrapper.
The Graham Quant Macro fund employs a multi-asset approach, trading global equity, fixed income, and currency futures on a long/short basis across four distinct sub-strategies. The portfolio construction integrates an array of price-based and fundamental macroeconomic data, with volatility measures and market correlations embedded to manage risk and sustain diversification across market cycles. The strategy targets absolute returns with minimal correlation to traditional market benchmarks, addressing a persistent institutional investor demand for non-correlated return sources.
James Medeiros, CEO of Graham Capital, noted that the Quant Macro strategy had delivered absolute returns with low correlation to traditional markets and competing trading strategies over its six-year institutional track record. The UCITS launch via Lombard Odier democratizes access to this strategy for investors previously unable to invest through hedge fund vehicles due to regulatory or allocation constraints. Stéphane Monier, Chief Investment Officer of Lombard Odier's private bank, characterized the Graham fund as offering "novel sources of alpha" to Lombard Odier's alternatives suite.
Lombard Odier's PrivilEdge platform, operational since 2014, manages over CHF 4.7 billion in assets across 25 externally-managed customized strategies spanning global unconstrained fixed income, US small-capitalization equities, Japanese small and mid-cap equities, and emerging market fixed income strategies, positioning the Graham Quant Macro fund as a complementary addition to its diversified alternatives ecosystem.
The Graham Quant Macro fund employs a multi-asset approach, trading global equity, fixed income, and currency futures on a long/short basis across four distinct sub-strategies. The portfolio construction integrates an array of price-based and fundamental macroeconomic data, with volatility measures and market correlations embedded to manage risk and sustain diversification across market cycles. The strategy targets absolute returns with minimal correlation to traditional market benchmarks, addressing a persistent institutional investor demand for non-correlated return sources.
James Medeiros, CEO of Graham Capital, noted that the Quant Macro strategy had delivered absolute returns with low correlation to traditional markets and competing trading strategies over its six-year institutional track record. The UCITS launch via Lombard Odier democratizes access to this strategy for investors previously unable to invest through hedge fund vehicles due to regulatory or allocation constraints. Stéphane Monier, Chief Investment Officer of Lombard Odier's private bank, characterized the Graham fund as offering "novel sources of alpha" to Lombard Odier's alternatives suite.
Lombard Odier's PrivilEdge platform, operational since 2014, manages over CHF 4.7 billion in assets across 25 externally-managed customized strategies spanning global unconstrained fixed income, US small-capitalization equities, Japanese small and mid-cap equities, and emerging market fixed income strategies, positioning the Graham Quant Macro fund as a complementary addition to its diversified alternatives ecosystem.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.