Singapore-based Vulpes Investment Management is reportedly planning to roll out its first quant fund in July this year, as part of its plan to tap the growing demand of such products in the Asian market.
Dubbed as Nova, the new fund will begin trading Japanese and Australian equities using $500,000 in seed money contributed by the Vulpes’ principals.
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The company has plans to move into Asia-Pacific markets and into futures to create the hedges at the portfolio level, as reported by asianinvestor.net.
Designed as a medium-frequency, intra-day systematic trading strategy, Nova completes small trades to capture alpha from stocks seen as trading away from their fair values.
Vulpes Investment Management chief risk officer Scott Treloar was quoted by asianinvestor.net as saying, "We feel there are still plenty of opportunities for quant trading in Asia, which is characterised by idiosyncratic market structures and diverse regulatory regimes across various time zones."
Treloar further explained that given that Asian exchanges are just starting to build out their electronic trading capability, these markets still present attractive opportunities for quant investors, as most hedge funds trading Asian markets are largely discretionary stock-pickers.
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By GlobalDataNova will be Vulpes’ second equity strategy; the firm also manages a buy-and-hold fund knowns as Testudo, which has U$100 million in assets and has been running for five years.
