Ridgedale Advisors LP, an investment firm specializing in the convergent/divergent investment approach, has opened its primary office in Rye Brook, New York. Ridgedale is accepting clients into its flagship Multi-Strategy Program (MSP), as well as its Multi-Source Active Commodity Alternative Index (RMAC).
Mark Rosenberg and Paul Lucek, co-CIOs of Ridgedale, are developers of the convergent/divergent portfolio diversification strategy. Peter Gorman and Steven Fidanzato have joined the firm as head of business development and head of trading, respectively. The Ridgedale team members, all previously at SSARIS Advisors LLC, have reunited after State Street Global Advisors sold back to the principals its majority stake in SSARIS in 2015.
MSP is a systematic absolute return strategy that trades global futures across equity, fixed income, commodity and currency asset classes, implementing multiple investment styles, geographies and time horizons in order to generate consistent absolute return. Rosenberg began the MSP program in 1986 when he launched RXR Capital, which then became SSARIS Advisors LLC in 2001 after selling a majority interest to SSgA. MSP is currently available in separately managed accounts and Ridgedale plans to make it available in a fund by year-end. MSP can also be structured as a Note (MSP Note) with an 8-year or shorter maturity, in which initial investment is principal protected by a major money center bank.
RMAC, which trades over 25 commodity markets, attempts to outperform the Bloomberg Commodity Index while seeking to minimize the magnitude of drawdowns. RMAC leverages the firm’s expertise in trading commodities, utilizing quantitative systematic approaches to analyze market regimes, backwardation, contango and trends. In its alpha form, RMAC hedges out the index beta to provide a pure alpha commodity return stream that is negatively correlated to both equity and fixed income.