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Market Leading ReturnsBowmoor Capital's Global Alpha fund is a "Trend Following" strategy that has consistently produced market leading returns, in both rising and falling markets.
Bowmoor Capital believe that their focus on scientific and systematic processes, as well as their commitment to following the data, gives them a strong competitive advantage and enables them to consistently deliver performance.
Their investment team is led by Gareth Abbott and Brendan Mulvany who have over 50 years of combined experience developing and running alpha-generating investment strategies.
What is a 'Trend following' Investment strategy?
Trend following is an investment strategy based on the technical analysis of changing market prices, rather than on the fundamental strengths of the investments. This strategy believes that prices tend to move upwards or downwards over time. Therefore, trend followers try to take advantage of these "market trends" by observing current trends and deciding whether to buy or sell based on these factors.
Trend following strategies have historically demonstrated low correlation to traditional investments such as stocks and bonds as well as other alternatives and have the potential to perform well in both rising and falling markets, including equity crisis periods.
Trend-following strategies have the ability to provide exposure to a broad range of global markets. In the case of the Bowmoor Capital Global Alpha fund, 21 markets are traded that include currencies, stock indices, commodities and fixed income.
If you would like to know more generic details regarding 'Trend Following' investment the following article entitled Understanding Trend Following Investment is a worwhile read.
To access the Bowmoor Capital Global Apha Fund we highly recommend the use of a personal portfolio bond
Why was the Bowmoor Capital Global Alpha Fund created?
Recent market events have shown, more than ever, the immense benefits of incorporating a managed futures strategy into an investment portfolio.
In 2022, a typical investment portfolio consisting of 60% equities and 40% bonds experienced a double-digit percentage loss. A surge in inflation resulted in declines in both equities and bonds.
Similar losses have occurred during previous periods of high inflation and during recessions (e.g. 2008).
In contrast, Global Alpha returned positive performance of 11.99%, contributing to average annualised returns of 23.37% since 2013. Bowmoor Capital achieve this by investing systematically in a diversified range of asset classes, covering stock markets, interest rates, currencies, energy, metals and commodities.
This allows Bowmoor Capital investors to achieve lower overall portfolio volatility, with Global Alpha complementing other traditional investments with very low long-term correlation. By taking long and short positions, Bowmoor Capital can derive alpha from trends in rising and falling markets, including times of crises.
Why Invest In the Global Alpha Fund?100% rules-based non-discretionary decision making
Bowmoor Capital do not attempt to predict the direction of the market. They do not make investment decisions based on emotions, politics, the media, broker opinions, etc. The Bowmoor Capital quantitative systems use sophisticated mathematical processes to identify and exploit major price trends in global markets by investing in a diversified portfolio of futures.
Those systems are based on well-established, reliable trend-following methodologies and empirical evidence which show that trends are a recurring phenomenon in financial markets, as a result of behavioural biases such as herding, feedback loops, overreaction and confirmation basis.
Bowmoor Capital therefore do not attempt to buy at the absolute bottom or sell at the absolute top - we believe that it is impossible to do so reliably and repeatedly. Bowmoor Capital capture the substantial middle of a market trend, up or down, for maximum repeatable profit. Bowmoor Capital react to and profit from unfolding markets trends, rather than trying to predict what might happen.
By doing so, Global Alpha has produced average returns of 23.37% per year since 2013, across bull and bear markets and during conditions that have been adverse for many other strategies.
Precise portfolio allocation and risk management
Bowmoor Capital position weighting is calculated precisely and mathematically based on multiple strategies, frequencies and markets, forming a 3 dimensional diversification space within our quantitative system. Strict risk controls ensure that each allocation is consistent with the volatility of the market and the total risk distributed across the portfolio.
Global macroeconomic diversification
During years of double-digit losses for equities and bonds Global Alpha has returned double-digit gains. By taking long and short positions, Bowmoor Capital profit from trending markets, up and down, including during crises.
Differentiation from other CTA strategies
The Bowmoor Capital system simultaneously runs 16 systematic strategies across 21 markets. Bowmoor Capital believe that this broad yet compact portfolio and methodology gives the Global Alpha strategy the best chances of maximising on a trend generating alpha. In other words, when the system identifies a trend, the investment in that trend is sufficiently concentrated to have a meaningful positive impact on performance.
"Glass box" system
The Bowmoor Capital system is not a "black box". It is a "glass box". The investment managers designed and developed the system, continuing to invest their time in its research and development. Bowmoor Capital fully understand the mathematical theory and rules underpinning the strategy and the calculations it performs - something which is not always the case amongst other managers.
Meet the individuals behind the Global Alpha Fund
"Tommorows Titans"
Gareth Abbott - Investment Manager
Global Alpha was designed and developed by Bowmoor Capital's investment manager, Gareth Abbot.
Gareth is a mathematician by profession and passion and is a Fellow of the Institute of Mathematics and its Applications (FIMA)-awarded to individuals who have made outstanding contributions to the development or application of mathematics.
Gareth has a trading,research and investment management career built over 20 years, reading pure mathematics at Glasgow and Strathclyde University.
Gareth started out his professional career in the City of London, heading up the derivatives desk at Duncan Duckett, before joining Harmonic Capital Partners - a leading global macro hedge fund.
During his time at Harmonic, Gareth was instrumental in the development of the fund's quantitative trading systems and its growth to $250m in Assets Under Management (AUM).
Now partnered with Bowmoor Capital, the Bowmoor Global Alpha Fund offers outside investors the opportunity to invest in one of the most successful trend-following investment strategies, under the management of an experienced team who are focussed on delivering performance and value to investors.
Michael Covel of 'Trend Following' book fame interviews Gareth Abbott in a very illuminating podcast below.
A "Top Traders" podcast providing further insight into the operations and success of the Global Alpha Fund
Richard Liddle - CEO
Richard is a former Military Officer with 21 years of experience serving in both the Royal Navy and Royal Air Force as a helicopter and fast jet pilot.
Having undertaken operational service in Iraq, Libya, Syria and Afghanistan, where he was involved in many multinational operations,Richard elected for a career change. He was selected for the Barclays Military Fund Management Scheme to fast track a career into fund management, but decided first to pursue his entrepreneurial interests, including co-founding a company specialising in providing homes for people with support needs and raising over £500 million for a REIT.
Learn more about Richard in the very enlightening article From Fighter Pilot to Bowmoor Capital CEO
Richard holds a Bachelor of Engineering (BEng) (Hons) from Newcastle University.
As CEO of Bowmoor Capital, Richard has a single-minded focus on providing investors with best in class returns with low risk and long-term yield.
Brendan Mulvany - Head of Execution
Brendan Mulvany is an experienced Head of Execution, with over 30 years of trading experience.
Brendan started his trading career with Dresdner Bank and Bank of America, specialising in the derivatives, futures and options markets. This led to Brendan building highly successful trading operations at the forefront of the investment industry, from the trading floor of the LIFFE EXCHANGE, to the desks of member firms KYTE FUTURES, REFCO, GHF FUTURES and MAREX.
As Head of Execution, Brendan leads all aspects of the Global Alpha strategy implementation.