AHL, founded in 1987, is a world leading quantitative investment manager specialising in systematic trading.
Our commitment to research has been the key factor contributing to our success, with AHL's flagship Diversified Programme returning 33.2% in the 2008 calendar year and 18.9% p.a. since inception to 31 March 2009. Current assets under management total $20.4 billion, making AHL one of the largest quantitative investment managers in the world.
The investment strategy employed by AHL is 100% systematic, using heavily researched trading systems to identify and profit from trends and other inefficiencies across a highly diversified portfolio of futures and other financial instruments. Diversification is central to AHL's approach, with systems analysing over 250 financial, currency and commodity markets daily across 36 global exchanges. New markets are continually being researched in order to diversify further AHL's programmes; markets that have been added in the recent past include credit derivatives, interest rate swaps and exchange traded funds. Trades are executed around-the-clock in either London or the new execution desk in Hong Kong.
Opened in April 2009, the Hong Kong desk enhances AHL's execution capabilities by providing a secondary trading hub outside the UK. The new desk enables AHL better to leverage local broker relationships in South East Asia and also to expand into new asset classes in this region of rapidly growing economic importance. The opening of the desk runs in parallel to the continuous research and development of AHL's electronic trading capabilities, where a great deal of development is being conducted from the Man Research Laboratory in Oxford.
The Man Research Laboratory (MRL) opened at the same time as the Oxford-Man Institute of Quantitative Finance (OMI) in September 2007. OMI, funded solely by Man, aims to be the world's leading institute for academic research into quantitative finance with a particular focus on alternative investments. In contrast to this, MRL undertakes commercial research into quantitative finance for the benefit of Man but shares the same premises as OMI, and is unique in the sense that no other finance company in the world has its own embedded research laboratory located within Oxford University. This close interaction means that AHL's researchers are exposed to the latest academic research through regular seminars and informal discussions. Since its launch, MRL has grown to include ten full time and visiting AHL researchers. High performance computing, trading model research and electronic trade execution are among areas currently being researched at the laboratory.
A number of MRL initiatives have already been implemented within AHL's mainstream investment management activities and have thus enhanced client investments. Due to their rapid growth, both OMI and MRL will move to new shared premises in autumn 2009 to accommodate further expansion. It is envisaged that the AHL Oxford team will make a significant contribution to ongoing research efforts in 2009 and beyond.
The new Hong Kong office and the expansion of the Man Research Laboratory underscore Man Group's continuing commitment to invest in the future of AHL. An additional 33 people were hired in 2008 as well as a further 10 in the first quarter of 2009. The majority of these new hires are researchers dedicated to the development of trading strategies, as well as the application of more advanced risk management systems and electronic execution technologies. Additional suitably qualified and experienced people will be hired in the future to ensure AHL maintains its leadership position in the field of quantitative investment management.
AHL recognises the importance of corporate governance and in 2008 became a founding signatory to the Hedge Fund Standards Board (HFSB) best practice standards. The industry recognised code consists of 25 standards divided into five categories, including disclosure, valuation, risk management, fund governance and shareholder conduct. These standards, combined with AHL being part of a FTSE listed and FSA regulated company, maximise the level of protection afforded to investors.
Members of the AHL management team from left to right - Anthony Ledford, Riju Sathyan, Andre Rzym, Andy Hutton, Tim Wong, Mike Robinson, Steffan Berridge
Uncorrelated performance in volatile markets
AHL's Diversified Programme returned 7.7% for the financial year 2009, with long and then short oil positions later in 2008 driving returns. Currency trading was also extremely profitable, with long US dollar positions adding to performance in calendar Q4. Some of these gains were given back in the first quarter of 2009, with range-bound prices and short-term reversals within the currency sector creating difficult trading conditions.
