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What are Tactical Strategies?

Tactical Strategies encompass several distinct strategies including global macro, CTA, FX, commodities and volatility-trading programs. The common theme is their source of diversification and their potential to generate returns which are uncorrelated to mainstream equity and fixed income investments. According to a several surveys it was estimated that there was roughly $2.6 trillion in total alternatives assets worldwide in 2013-2014, and more than $325 billion in managed futures assets (i.e. which includes CTAs, FX managers, commodities managers). Adding Global Macro programs to this universe increases the total assets allocated to Tactical Strategies to a figure closer to $600 billion.

Array of Tactical Strategies

MULTI-STRATEGY

Multiple strategy programs are programs that can encompass any or all of the other programs listed on this page.

QUANT MACRO STRATEGIES

Quant macro strategies rely on quantitative models that draw on macro-economic factors - including supply and demand, global asset flows, and global geopolitical factors - to predict price movements in various markets, predominantly the global equity, fixed income, and FX markets.

OPTIONS / VOLATILITY STRATEGIES

Options and volatility trading methods exploit movements in another dimension other than price – volatility. Managers in this sector achieve this through trading either options contracts and spreads position to capitalize on certain types of movement in both volatility and price, or futures contracts on implied volatility

Short Term

Short term trading strategies are strategies in which positions are only held for a period ranging from within a single day to two weeks. Generally, short-term trading can consist of counter-trend / mean reversion techniques or trend following techniques.

Currency Strategies

Foreign exchange (or “FX”) managers seek to capitalize on the constant fluctuation of exchange rates between currencies. Such programs can trade established currencies such as US dollar and euro, or emerging currencies such as the Mexican peso or South African rand. This category encompasses multiple styles of trading foreign exchange, including a fundamental macro approach, a technical approach, or a carry trade based approach.

FUNDAMENTAL COMMODITIES STRATEGIES

These strategies are generally trade from a discretionary standpoint based on market fundamentals, where the manager analyzes the underlying economic factors of a market based on the experience of the manager and his/her research team. Such strategies specialize in particular sectors or markets. For example, a fundamental agricultural trader may take a position in wheat based on acreage planted, rainfall, and other supply vs. demand factors.

SYSTEMATIC MACRO/TREND STRATEGIES

Systematic Macro/Trend programs trade based on an objective and automated set of rules designed to avoid human emotional biases that influence discretionary trading decisions. Such mechanical approaches assume that some trades will not be successful, but the trader accepts these setbacks in the hopes that the system will generally be able to capture major trends.

Global Macro Strategies

Global macro managers employ macro-economic factors - including supply and demand, global asset flows, and global geopolitical factors - to predict price movements in various markets, predominantly the global equity, fixed income, and FX markets. For example, an investor may capitalize on a country’s recession by short selling a country’s bond or stock market using futures or derivatives contracts.

Current Hydra Managers

Clients are able to access vital data including Manager performance reports and quantitative analysis through our client portal. Qualitative analysis is also available on our carefully vetted managers.

Hydra Established -

For more detailed information on these managers, register with Hydra.
Program Program Type Brief Description
ADG Capital Management - Systematic Macro Program Quant Macro Model-driven quantitative macro in diversified markets.
AE Capital Management - Macro FX Program FX Model-driven quantitative macro in currencies.
Atlantic Capital Advisors - Global Diversified Discretionary/Fundamental Commodities Discretionary, largely fundamental commodities trading.
Brandywine Asset Management - Symphony Program Quant Macro Fundamentally-based, systematic, multi-strategy, globally-diversified.
Ballymena Advisors LLC - Soft Commodity Program Discretionary/Fundamental Commodities Fundamental discretionary soft commodities trading strategy.
Blackwater Capital Management - Global Program Systematic Trend-following Systematic trend capture in diversified markets.
Brandywine Asset Management - Symphony Program Quant Macro Systematic global diversified trading program.
Chesapeake Capital - Diversified Program Systematic Trend-following Systematic L/T trend-following of diversified markets.
Claughton Capital - Auto Reactive Positioning Program Systematic Trend-following Probability based strategy and trend following sub-strategy.
Deep Field - Singularity Program Short Term Short-term systematic pattern recognition in diversified markets.
Degraves Capital Management - Global Diversified Short Term Intraday and ST systematic trading of diversified markets.
EMC Capital Advisors -
Classic Program
Systematic Trend-following
Diversified systematic trend following strategy.
FDO - Global Currency Program FX Quantitative strategy encompassing global market currencies.
Fort LP - Contrarian
Program
Systematic Trend-following Systematic trend, but with unique entry and exit points based on Bayesian and momentum-based inputs.
Four Elements Capital - Blended Program Discretionary/Fundamental Commodities Systematic Metals Trading program.
Gamma Q - Standard Program Discretionary/Fundamental Commodities Core-Technical discretionary analysis in diverse markets.
Goldenwise Capital Management - Quantitative Multi-Strategy Program Multi-Strategy Model-based, multi-strategy trading with a discretionary risk overlay in equity index and volatility markets.
M6 Capital - Standard Program Discretionary/Fundamental Commodities Fundamental discretionary agriculture trading strategy.
Qbasis Invest GmbH-i-Trend Program Quant Macro Combined systematic trend-following and intra-day trading program.
QIM - Global Program Short Term Multi-Model short-term pattern recognition.
Quantica Capital Management - Managed Futures Program Systematic Trend-following Systematic trend capture program, with a focus on relative trading.
Quantmetrics Capital Management - Directional Strategy Short Term Quantitative directional, short term systematic
trading program.
Red Rock Capital -Systematic Global Macro Program Systematic Trend Technically based, short and medium-term commodities trading.
RMG - FX Strategy FX Fundamental discretionary FX program.
Rosetta Capital Management - Rosetta Program Discretionary/Fundamental Commodities Discretionary fundamental and technical livestock and agriculture strategy.
Rotella Capital Management - Polaris Program Systematic Trend Following Systematic, diversified, multi-model and multi-time-frame program.
ROW Asset Management - Diversified Program Quant Macro Model-driven quantitative macro in diversified markets.
SCT Capital Management - AQT Program Short Term Short Term systematic/neural driven on diversified markets.
Three Rock Capital - Macro Strategy Global Macro Short Term discretionary global macro.
Hydra SP-012 (Transtrend) - Enhanced Diversified Trend Systematic Trend Following Fully systematic medium-term trend following across highly diversified markets


Hydra Emerging

Program Program Type Brief Description
Caddo Capital Management - Tactical Diversified Program Systematic Trend-following Systematic diversified trend following strategy.
Crystal Tower Advisors - Futures Program Short Term Adaptive short term pattern recognition program
EMC Capital Advisors - Alpha Plus Systematic Trend-following Systematic long term trend focused trend following strategy.
FX Vision - Pro Matrix Program FX Systematic market-neutral FX in major currency markets
Harbour Square Capital Management - Standard Program Discretionary/Fundamental Commodities Fundamental-based discretionary energy trading.
PC Global - Systematic Program Short Term Short Term pattern recognition.
Red Rock Capital - Commodities Long-Short Program Systematic Trend Technically based, short and medium-term commodities trading.
Sandpiper Asset Management-Diverse Global Macro Program Global Macro Flexible asset-class macro trend following trading strategy.
TCM - Proteus Dynamic Volatility Program Options/Volatility Model-driven dynamic volatility program.


If you don’t see a manager that you were hoping to see, please contact us.

For more detailed information on these managers, register with Hydra.