Key Takeaways
- • GreshamQuant's ACAR Fund has grown from $50 million seed capital (March 2017) to $1.4 billion under management, expanding market coverage from 43 to approximately 150 markets — demonstrating sustained institutional adoption of alternative commodity trend-following strategies.
- • Dr. Thomas Babbedge, who joined GreshamQuant in spring 2016 from Winton (where he spent ten years), has been elevated to Co-Head and Chief Scientist, with model ownership of ACAR since 2023, positioning him as architect of the firm's quantitative infrastructure and signal generation.
- • GreshamQuant launched SAFI (fixed income trend-following strategy) in early 2023 with $50 million seed capital, currently trading approximately 120 fixed income markets, representing strategic diversification beyond commodities into higher-quality, less crowded trend-following opportunities.
- • Dr. Yoav Git, recruited as Managing Director Quant Research, brings Man-AHL pedigree as former Partner and Head of Fixed Income, signaling GreshamQuant's commitment to institutional-grade quantitative expertise in fixed income markets.
- • The firm's investment thesis emphasizes "higher quality wood" and "larger trends more frequently" rather than incremental signal optimization, indicating a strategic pivot toward less correlated, higher conviction trend signals in alternative markets.
Summary
GreshamQuant, established in 2016 by Scott Kerson (formerly Partner and Head of Commodities at Man-AHL), has emerged as a significant player in alternative commodity and fixed income trend-following strategies. The firm's flagship ACAR (Alternative Commodity Alternative Rebalance) Fund exemplifies this growth trajectory: launched in March 2017 with $50 million in seed capital covering 43 markets, ACAR has expanded to manage $1.4 billion across approximately 150 markets as of August 2024. This seven-year expansion reflects sustained institutional demand for diversified trend-following exposure in commodities.
Dr. Thomas Babbedge, elevated to Co-Head and Chief Scientist, has been instrumental in building the quantitative foundation underlying ACAR's infrastructure. Joining GreshamQuant in spring 2016 after a decade at Winton, Babbedge authored the codebase governing signal generation, portfolio construction, cost models, and risk management systems. Since 2023, he has held model ownership of ACAR alongside Co-Head Jonty Field (another Man-AHL alumnus), positioning him as the firm's technical authority on strategy development and execution.
GreshamQuant's strategic evolution extends beyond commodities. The firm launched SAFI, a fixed income trend-following strategy, at the beginning of 2023 with $50 million of initial capital. SAFI currently trades approximately 120 fixed income markets, representing a deliberate expansion into less-crowded trend-following segments. This launch was facilitated by the recruitment of Dr. Yoav Git as Managing Director Quant Research. Git, a former Partner and Head of Fixed Income at Man-AHL, brings institutional-grade quantitative expertise and aligns with founder Scott Kerson's vision for "more diversifying, and higher quality trend in alternative markets."
The firm's philosophy rejects raw signal optimization in favor of higher-quality trend identification. As articulated in the profile, GreshamQuant's approach emphasizes selective market selection—"we do not have a sharper saw, but we cut higher quality wood, and pick up larger trends more frequently." This positioning suggests a contrarian stance toward mainstream trend-following, which has faced performance headwinds over the past decade, positioning GreshamQuant as a differentiated vehicle for institutional allocators seeking exposure to less-correlated, conviction-driven trend signals in alternative asset classes.
Dr. Thomas Babbedge, elevated to Co-Head and Chief Scientist, has been instrumental in building the quantitative foundation underlying ACAR's infrastructure. Joining GreshamQuant in spring 2016 after a decade at Winton, Babbedge authored the codebase governing signal generation, portfolio construction, cost models, and risk management systems. Since 2023, he has held model ownership of ACAR alongside Co-Head Jonty Field (another Man-AHL alumnus), positioning him as the firm's technical authority on strategy development and execution.
GreshamQuant's strategic evolution extends beyond commodities. The firm launched SAFI, a fixed income trend-following strategy, at the beginning of 2023 with $50 million of initial capital. SAFI currently trades approximately 120 fixed income markets, representing a deliberate expansion into less-crowded trend-following segments. This launch was facilitated by the recruitment of Dr. Yoav Git as Managing Director Quant Research. Git, a former Partner and Head of Fixed Income at Man-AHL, brings institutional-grade quantitative expertise and aligns with founder Scott Kerson's vision for "more diversifying, and higher quality trend in alternative markets."
The firm's philosophy rejects raw signal optimization in favor of higher-quality trend identification. As articulated in the profile, GreshamQuant's approach emphasizes selective market selection—"we do not have a sharper saw, but we cut higher quality wood, and pick up larger trends more frequently." This positioning suggests a contrarian stance toward mainstream trend-following, which has faced performance headwinds over the past decade, positioning GreshamQuant as a differentiated vehicle for institutional allocators seeking exposure to less-correlated, conviction-driven trend signals in alternative asset classes.
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