Blackstone's Smart Quantitative Strategy

    A machine-learning hedge fund backed by Blackstone Group has enjoyed a 20% gain in this year's wild Covid-19 market.
Blackstone's Bayforest Capital Ltd is run by quantitative trader Theodoros Tsagaris, who has worked at Tudor Investment Corporation, GSA Capital, and BlueCrest Capital Management. The cross-asset strategy has posted record positive returns in every month this year, bringing new attention to the company.
 
    He attributes Bayforest's success to algorithms that track rapidly changing of capital flows in real-time. With a system of trading futures based on different investor behavior, the average holding period is only eight days. The portfolio was able to make money even as the market turned from despair to prosperity.
From record declines to historic gains, Bayforest's strategy of tracking capital flows is especially attractive in volatile markets. Institutional investors often lose out on directional bets to quick turnarounds between bulls and bears. Strategies to track capital flow include trading ahead of an index rebalancing, buying stocks that are touted on websites frequented by day traders, etc.