Caxton | ii magazine

Caxton group manages $9b with 200 workers with 2.% annual return for 2011.

Mr Law says that market strategies must be far more “micro” than using the four macro markets.

The review capital allocation every 6 months for each fund (25 overall).

Their drawdown rule used to be 10%, but now it is 5%. When a fund manager has a 5% drawdown, he must leave markets by two or five days. For this rule they manage a leverage of 2.5 to 3.5. they expect every fund to hit this drawdown limit at least every 18 months; if one fund does not hit such rule in that time it probably means that lesser risk is being taken by that fund or the manager is too much of a cautious approach.

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