Today, amidst the turmoil of failing financial institutions and congressional bailout negotiations, MCG launched an internal proprietary hedge fund. “This environment represents an exceptional opportunity to utilize our fresh capital to take advantage of market inefficiencies,” said Head of Mathematical Finance, Barron Gati. Instead of shying away from what appears to be a market rife with uncertainty, the expert analysts at MCG jumped at the opportunity to deploy their capital in the new financial environment. “What better time to prove the efficacy of our strategy than in the midst of the current market turmoil?” asked Gati.
MCG’s strategy is derived from the philosophy that as long as volatility exists in the financial markets, there are always opportunities to generate alpha, the returns to the skillful management of capital. This can involve investing in anything from traditional equity stakes to futures, options, and other derivatives in the currency, commodity, equity, and fixed income markets.
In other words, MCG utilizes its expertise to identify rare but pronounced inefficiencies to earn above-market returns from the above mentioned markets. The fund was launched today in light of the once-in-a-lifetime opportunities that have appeared due to the strife occurring throughout domestic and international financial markets. One of MCG's first positions in this environment was to go long LIBOR futures in an attempt to capture the changeover in monetary policy that is likely to occur. MCG is also currently investigating other opportunities in the Interest Rate, Commodities, and Option markets, in addition to stock-specific trades across large and small cap equities.
MCG will continuously update the hedge fund’s results and publish them on its website. This transparency enables public viewing of how MCG´s investment strategy performs in this new environment. MCG´s proprietary fund is not accepting investors and is designated only for the investment of the firm´s retained earnings.
