Niederhoffer's Negative Equity Correlation Strategy Still Gains 9.3%

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Mark Melin
Published on
Updated on

R. G. Niederhoffer Capital Management finished 2013 up 9.3% in the fund’s flagship diversified program, according to an investor letter reviewed by ValueWalk.  The fund’s benchmark, the Newedge Short Term Traders Index, was up 3.52% on the year. Positive performance typically during periods of stock market turbulence This represented the fund’s best performance in any year that the stock market rose by more than 20%.  Positive performance during generally negative market environments is a noteworthy achievement for a trading strategy.  The fund typically performs positively during market environments of heavy price volatility, periods of time when stock market performance can…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.