Statistical Arbitrage is considered one of the original quantitative alpha generators, and we believe the Clinton Group is one of the most preeminent managers in the space.
La Jolla, California (PRWEB)
September 20, 2017
Liquid alternative investment veteran and founder of AlphaCore Capital, Dick Pfister, and his team have launched a new mutual fund to meet increasing demand for returns that offer diversification from traditional stocks and bonds. The newly launched AlphaCore Statistical Arbitrage Fund (Institutional Class: STAKX , is a daily liquid mutual fund which provides exposure to a statistical arbitrage strategy. Historically, such strategies have only been available in less liquid investment structures. AlphaCore can now deliver statistical arbitrage in a mutual fund, and has a long history of combining alternative strategies with traditional allocations. The strategy accessed is managed by the Clinton Group, Inc., a globally renowned investment firm founded by George Hall in 1991. The firm has a long track record in statistical arbitrage and is widely regarded as one of the best in this specialized quantitative arena.
The new fund is another avenue for investors to access AlphaCore’s ability to source and deliver alternative investment solutions that can help diversify a traditional portfolio.
Statistical arbitrage (“Stat Arb”) is a quantitatively driven trading strategy. The strategy seeks to exploit pricing movements across thousands of securities. One common form of the strategy is pairs trading (most commonly using highly liquid equities). The approach is rooted in rules-based decision making and can thus be applied in significant scale. Stat Arb demonstrates several attractive attributes for investors, including the potential to perform in challenging market conditions. Historically, the return characteristics have exhibited low correlation to traditional asset classes in addition to other alternative strategies. Additionally, the strategy exhibits a tendency to benefit in a rising volatility environment.
“Statistical Arbitrage is considered one of the original quantitative alpha generators and we believe the Clinton Group is one of the most preeminent managers in the space having created their stat arb strategy more than 15 years ago,”…