14/12/2011 Author: Will Wainewright

Castilium Capital readies new systematic offering

Alicia Vidler, a former senior portfolio manager on Bank of America Merrill Lynch’s prop trading desk, is spearheading the launch next quarter of a systematic long/short equity strategy which will deploy algorithms developed by a former MIT professor.

Castilium Capital, whose managing partner Guy Mitchinson worked extensively in derivatives while at Deutsche Bank, is expected to launch in February 2012.

Algorithms developed by Professor Arnold Amstutz, who was previously president of Advest, the US brokerage firm, and led various divisions of CitiBank, will be used.

Castilium, which is currently awaiting FSA registration, is looking to raise at least $100m by the end of year one, sources close to the fund confirmed.

A master-feeder structure will be employed to reach different investor groups. Michael Neff, who founded the wealth management software firm Monetaire, is the fourth founding partner and will act as executive advisor.

Castilium’s planned use of Artificial Intelligence technology “enables the model to rapidly re-engineer itself and  therefore adapt to circumstances on an ongoing basis”, according to one source.

The business’s key focus has been on the implementation of institutional standards and infrastructure across its operation as it targets assets from providers of seed capital and other investors.

“We have been working on the launch for several months and given a lot of careful consideration to our team and processes. Our aim is to create a successful and sustainable business,” said Vidler.