In his 35 years of experience in capital markets, Philippe Bonnefoy has seen investment strategies designed by humans evolve into complex quantitative computer models that make investment decisions in real time as the market changes.
While many might not fully understand this evolution, Philippe Bonnefoy is here to explain that these computer trading models are pre-programmed to respond to market prices instantly. Philippe Bonnefoy and his partners have used this concept to build their own fund management business, Eleuthera Capital.
Eleuthera Capital specializes in quantitative short-term trading of currency markets known as the “Haven Quantitative Strategy.” It also utilizes another “macro-trading” strategy called “Gulfstream Macro Trading” for currencies, fixed income futures, equity index futures, and some commodity futures.
Philippe Bonnefoy and his Eleuthera Capital partners are leading edge investors who pursue an investment strategy that seek to produce absolute investment returns. These returns are otherwise known as “Alpha,” which is the ability to produce gains independent of market directions and returns that are designed to beat indices and passive investment strategies. Investors value alpha as it is the excess return above what they can earn if they just buy and hold an asset. As these types of returns are not reliant on market direction, Eleuthera Capital’s investment strategies are ideal candidates to add to a portfolio in order to diversify investment risk.
There are very few investment businesses that specialize in short-term quantitative macro trading, making Eleuthera Capital a fairly unique venture. The way it works is that Philippe Bonnefoy and those associated with Eleuthera Capital are short-term traders of markets who use algorithmic trading techniques that trade very actively, and hold positions for short periods of time, but are not considered “high-frequency” trading (high-frequency traders are not always thought of as a benign presence in markets).
Philippe Bonnefoy likens the Eleuthera Capital strategy to that of running a toll booth. He explains that the goal is get hundreds or thousands of trades to go through the “booth” so they can have the opportunity to do monetize the trades, as they typically win more often than they lose. Eleuthera Capital then uses statistical data from these trades to determine the performance outcome, which drives profits in most cases.
Those who might be interested in Philippe Bonnefoy’s Eleuthera Capital fund management business include high-net worth individual investors in Europe, family offices, and institutional investors. When these clients get to know Philippe Bonnefoy and the team at Eleuthera Capital, they quickly come to realize that they’re dealing with very experienced investors who are on the cutting edge of investing in the global capital markets.