NuWave Investment Management has applied its values of ingenuity, research and technology to its global investing activities. It uses an approach that is based on several investment strategies. These strategies are implemented to markets that are financial and commodities based. NuWave Investment Management is able to offer returns that are adjusted to risk from different market scenarios. It provides diversification and non-correlated benefits from both traditional and hedge fund strategies.
Drury is located in Parsippany, NJ. Principals are Troy Buckner, John Ryan, Yury V. Orlov and Craig A. Weynand.
Company Background
Founded in 2000 by Troy Bruckner, he is the managing principal of the firm.
Goals in Investment
The goal of NuWave Investment Management is to achieve returns that are risk adjusted in different market environments while offering diversification and non-correlation benefits from traditional and hedge fund strategies.
Markets Traded
Stock indices, meats, softs, grains, metals, energies, currencies and fixed income are being traded.
Strategy
NuWave Investment Management’ Combined Futures Portfolio uses a methodology that is based on recognition of patterns and forecasting. It is probability-based and avoids trend following. It seeks to identify patterns on behavior that repeat and historically points out to dominant directional outcome in prices in the future. Forecasting period has a range from a couple of weeks to several months.
The portfolio has more than 30 models for trading; each has the same set of futures markets that are diversified. However, each model has different time frames and trading techniques. The result is a portfolio that is diversified both in terms of markets, time and trading.
Risk relationships are being monitored and addressed by the firm. Some of the risks that are identified and defined by NuWave are market, portfolio and execution risk.
Market risk is minimized through the firm’s use of a proprietary strategy that recognizes patterns for each market. It defines signals, value at risk, stress tests and risk control. Risk is equalized among all positions by managing the size of the position, the exposure on the markets and the risk targets.
Portfolio risk is also managed by combining sub strategies in investment that are opportunistic and focused on market cycles that are directional and with duration that varies. Constraints are implemented to reduce aggregate risk. The models constrain sector concentrations, single market exposures, findings on stress tests and overall leverage. Governing the entire portfolio is another proprietary risk overlay. Based on each trade’s potential to generate return without exposing to risk, each trade is either accepted or rejected.
Execution risk is also controlled using another proprietary infrastructure. It integrates risk management and trades real time. Most trades are done using trade algorithms that conceal the firm’s activity in the market. Trades completed are saved in the database while measuring the risks to the portfolio.
Key Personnel
Troy Buckner
Troy Buckner is the founder and managing principal of NuWave. For more than 10 years, he has led the firm to growth and to becoming one of the leaders in alternative investment management. He is in charge of management of the firm and occupies other positions such as Co-Head of Research and Chairman of the firm’s Management and Risk Committees.
As the major developer of the firm’s approach in pattern recognition, he is still involved in the firm’s research and development activities. The proprietary modeling platforms and trading infrastructure also benefit from his inputs. His experience in creating programs that are non-correlated and his understanding of market theory serve to complement each other.
Before the founding of the firm, he started as a portfolio sales specialist at the Salomon Brother, Inc. He then moved to George E. Warren Corporation as a developer of strategies for futures and equities trading. He was a part of Classic Capital and Hyman Beck & Company. He received his degree from the University of Delaware with majors in finance and accounting and a minor in economics. He received his M.B.A. from the University of Chicago.
John Ryan
John Ryan is the Chief Technology Officer and also a principal of the firm. He joined the firm on 2001. He is in charge of all efforts related to IT, including infrastructure, support, operational planning, disaster and contingency planning and software development. His skills in programming and development of software contributed greatly to the proprietary systems of the firm.
Before joining NuWave Investment Management, he was the Director of Technology and principal of Hyman Beck & Company. He was in charge of developing network and communications solutions for their clients. He received his degree in Business Administration with a major in Computer Information Systems from the Bernard Baruch College at the City University of New York.
Yury V. Orlov
Yury V. Orlov is the Co-Head of Research and also a principal of the firm. He is in charge of the research and development and the design and execution of the proprietary modeling platforms and infrastructure for the firm. He is also responsible for overseeing the research professionals.
Before joining the firm, he was a Research Scientist at the Nuclear Physics Institute of the Moscow State University. There he met Troy Buckner. He was initially a consultant for the firm. In 2003, he moved to the US and formally become one of its principals.
He is one of the experts that lead the field of computer programming, time series analysis, algorithms and pattern recognition. He has applied this expertise in modeling techniques for both the private and public sector. He wrote as author or co author more than 50 research papers and published in journals and presented in international conferences.
He received his Master’s degree in Physics and his Ph. D. in Pattern Recognition for Analysis and Time Series Segmentation from the Moscow State University.
Craig A. Weynand
Craig A. Weynand is the COO and also a principal of the firm. In 2009, he joined the firm as the manager for the day to day business operations. He is also the Chairman of several committees, such as Trading, Compliance and Technology and a member of the Management and Risk Committee.
Before joining the firm, he occupied several positions in Morgan Stanley and its entities. Due to his diligence, performance and development of products in the Managed Futures Department, he became manager of the CTA selection. Later, he moved to Campbell & Company, Inc. as General Counsel and a member of the Executive Management Team. There he was responsible for the compliance and legal affairs of the firm. He was also in charge of general oversight, internal audit and trade support. He then moved to Graham Capital Management and occupied the position of Director of Investor Services. There he was in charge of relationship with investors, development of products and marketing.
He completed his B.S. degree with majors in Marketing and International Business; he received his M.B.A from the NYU’s Leonard Stern School of Business and his J.D. from the Fordham University School of Law.
Offerings
NuWave Investment Management minimum is $10,000k with a management fee of 2% and a performance fee of 20%.
2014 NuWave Investment Management Performance Statistics
Annualized volatility is at 14.89%. Sharpe (RFR= 1%) is at 0.53. CAROR is at 8.06%. Assets are at $72.3 million. Worst DD to date is -30.55 and S&P Correlation is at -0.38. Year to date is at 0.50% with DEC at 0.50%.