Key Takeaways
- • Winton Capital, a London-based commodity trading advisor (CTA) hedge fund with $20 billion in funds under management according to the publisher's context, has seen many of its traders leave to launch their own CTA firms.
- • Sir David Harding's firm has acted as a launchpad for successful CTA managers including Altis, BlueCrest and Beach Capital, per the article.
- • Harding says Winton does not keep its staff: "About 16 CTAs have spun out of this work over the years" despite large salaries, bonuses and share options.
- • The article notes that managed futures outperformed all other hedge fund strategies when markets crashed in 2008.
Summary
Winton Capital, the London-based commodity trading advisor (CTA) hedge fund with $20 billion in funds under management, is profiled in Investment Magazine as a firm whose quantitative approach has produced a notable alumni network. According to the article, the firm has served as a launchpad for several successful CTA managers, including Altis, BlueCrest and Beach Capital.
Harding acknowledged that Winton cannot guarantee it will retain its staff. "About 16 CTAs have spun out of this work over the years, so the answer is: you don't keep people," he is quoted as saying. Despite big salaries, generous bonuses and share options, employees continue to leave to start their own enterprises.
Harding also addressed the absence of formal intellectual property protection in the business. "There's no intellectual property [IP] law in what we do. There is no patent, trademark or copyright. But we seem to do perfectly well without IP protection," he said.
The article attributes part of the strategic divergence among London CTAs to the acquisition of AHL by Man Investments, which Harding suggests may have discouraged those firms from diversifying their strategies as Tudor Investment Corporation did. The article notes this proved fortunate, as managed futures outperformed all other hedge fund strategies when markets crashed in 2008.
Harding acknowledged that Winton cannot guarantee it will retain its staff. "About 16 CTAs have spun out of this work over the years, so the answer is: you don't keep people," he is quoted as saying. Despite big salaries, generous bonuses and share options, employees continue to leave to start their own enterprises.
Harding also addressed the absence of formal intellectual property protection in the business. "There's no intellectual property [IP] law in what we do. There is no patent, trademark or copyright. But we seem to do perfectly well without IP protection," he said.
The article attributes part of the strategic divergence among London CTAs to the acquisition of AHL by Man Investments, which Harding suggests may have discouraged those firms from diversifying their strategies as Tudor Investment Corporation did. The article notes this proved fortunate, as managed futures outperformed all other hedge fund strategies when markets crashed in 2008.
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