News round-up: LAM adds long/short equity team; SIGTech: Data and analytics challenges abound for quant funds; Grayscale files Form 10 with SEC for Digital Large Cap Fund

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LAM adds long/short equity team

Lazard Asset Management (LAM) has grown its alternative investment platform with the addition of a long/short equity team.

The new absolute return strategy team is focused on the technology, media, and telecommunications (TMT) industries. Co-Portfolio Managers Thomas Wang and Charles Murias are joining LAM from HM Global Management.

As Co-Portfolio Managers of the newly formed LAM TMT team, Wang and Murias will continue to manage their long/short equity strategy, focused on the Global TMT Sector. The strategy, which they have managed since inception, is based on a fundamental, research-driven process.

“We are looking forward to joining Lazard. Having the ability to leverage LAM’s research capabilities, technology, risk management, operational infrastructure, and global distribution, will not only enhance our fundamental research capabilities, but will also enable us to spend the majority of our time doing what we love – investing,” said Wang.

As of March 31, 2021, Lazard’s Alternative Investment Platform managed approximately $3.1bn in client assets.
 

SIGTech: Data and analytics challenges abound for quant funds

Data onboarding, analytics, backtesting and trade execution are among the major challenges facing quant funds today, according to new research from SIGTech.

Quant trading platform SIGTech said it was witnessing ‘a new phenomenon’ whereby the notional volume of options traded now largely exceeds that of the underlying stocks in some markets. The resulting volume increase has put options on the agenda for many investment managers, the team added.

Discussing the obstacles faced by quant managers, SIGTech listed Data and Data Onboarding in first and second place respectively.

“A robust options quant strategy will most likely be based on volatility data, which is one of the most expensive data sets in the market,” read the firm’s report. “Volatility data can easily cost hundreds of thousands of dollars in one-off and recurring license costs - and this is just for the raw data.”

Analytics, backtesting and trade execution rounded out the list of challenges.

“Options trading strategies can’t be backtested through existing infrastructure, such as those used for futures strategies, for example,” continued the report. “The backtesting engine will require additional quantitative analytics and knowledge of market conventions to allow for accurate backtests.”

 

Grayscale files Form 10 with SEC for Digital Large Cap Fund

Grayscale Investments, the digital currency asset manager with $53bn in AUM, has submitted a Form 10 to the SEC for Grayscale Digital Large Cap Fund (GDLC), a fund that tracks a basket of the world’s top digital currencies.

If the submission is effective, Grayscale would be required to file regular financial reports with the SEC, including quarterly reports and financial statements for GDLC through Form 10-Q, similar to other public companies and funds.

Grayscale said it believes this increased reporting and oversight “helps build investor trust in digital currency investment products”.

If effective, GDLC would become the third Grayscale product to be an SEC reporting company, joining Grayscale Bitcoin Trust and Grayscale Ethereum Trust.

Stephanie Taylor

Head of Event Content, HFM

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