Fund of the month April 2016: Garraway Financial Trends

Fund Strategy
Garraway Financial Trends is a systematic trend following managed futures fund trading in global financial markets. It aims to perform independently of traditional stock and bond investments, thereby providing valuable diversification benefits and potentially improving the risk/reward profile of a traditional portfolio. The investment manager employs a systematic, proprietary, trend following strategy which currently trades across 36 UCITS eligible exchange traded financial futures. The strategy looks to identify longer term and shorter-term price trends. The aim is to enter the market in the direction of the long-term trend when ‘action’ is taking place, this is typically when new highs are being made in an up-trend or new lows are being made in a down-trend. The fund then exits the market when ‘reaction’ is taking place, this is typically when markets are falling from recent highs in the case of a long position or rallying from recent lows in the case of a short position. The strategy is agnostic: It has no intrinsic bias to taking a long or short position in any of the markets in which it trades and can spend long periods of time with no position at all. Positions are sized by the strategy in line with each specific market’s volatility. The strategy trades futures on a wide range of global currencies, stock indices and government bonds. It only trades highly liquid exchange listed contracts.

Fund Chart

Fund Facts
Inception date: 20th September 2012
AuM: EUR 10 million
Sharpe ratio: 0.31 (3 year)
Volatility: 15.78
1 month performance: -4.42%
3 month performance: 13.95%
12 month performance: -0.11%
YTD performance: 13.95%%
Ann. perf. since inception: 3.13%
(All data as of March 31st 2016)

Portfolio Manager
Darran Goodwin started his investment banking career in 1997 as a Sales Trader with Butterfield Securities. In 1999, he joined the investment bank, Fox-Pitt, Kelton, where he worked for six years before being recruited by Bear Stearns as part of its European expansion. During this time, he spent 10 years studying and developing systematic trading strategies. In 2008, he left Bear Stearns to join EEA Fund Management Limited as Fund Manager and Trader. There, he developed and traded the EEA Futures Program across a wide range of commodity and financial futures markets. It was a successful systematic trend following strategy with a high weighting towards commodities. After extensive research, development and testing a new ‘pure’ UCITS strategy was introduced in February 2014. This is the strategy employed by Garraway Financial Trends. Darran was an integral part of the team which formed Garraway Capital Management in May 2015.

For more information click here.