Mr. Laxton has held a variety of senior management roles for some of the world’s largest asset managers, investment banks and hedge funds. He has successfully managed institutional and high net worth client accounts for over 15 years with a focus on a systematic approach to investment in global futures markets. Prior to joining the UK investment industry Nick gained a Ph.D. in Physics from Imperial College, London UK, which is consistently ranked as a world top ten academic institution.
The Advisor can deploy any combination of investment strategies from a library of systematic models specifically designed by the Advisor to offer consistent sources of high quality risk adjusted returns. Strategies offer the Advisor and Client unique sources of diversification via relative value trades. These trades broaden the opportunity set via long and short positions. Furthermore relative value positions succeed when the relative ranking of market movements are predicted rather than absolute market moves. There is a higher chance of success employing relative value since we do not necessarily need to predict market direction to have profitable trades.
A strong facet of systematic investment programs is their discipline. Many independent studies show Advisors that adopt strict, disciplined and clear investment procedures and guidelines enjoy sustained and repeatable investment returns. Those that exhibit strong risk controls exhibit shorter and less pronounced periods of drawdown. The Advisor uses tight risk constraints at all stages in the investment process – from forecasts from individual strategies through to the precise portfolio mix optimized to the Client investment objectives and preferences.
The use of relative value trades by the Advisor gives the Client a portfolio that can perform in both upward and downward trending markets. This absolute return goal of the Advisor means that capital is deployed consistently via investment strategies with long proven track records. Such features lend confidence to, although do not guarantee, future periods of return to the Client. A clear disciplined approach to entering and exiting positions mean Clients are less exposed to inconsistencies in a more discretionary investment style. Furthermore the systematic nature of the investment process mean it is straightforward for the Advisor to test, analyze and report upon the effectiveness of all aspects of the investment process. The return profile of our programs is consistent with traditional alternative investment practices in that they are designed to achieve absolute return profiles in both bull and bear market environments.
With these trading and risk management principles in place, the Advisor attempts to provide above average returns while experiencing limited draw-downs.