In this Bowmoor Capital Review, we’ll explore the company’s investment strategy and performance. We’ll also assess the pros and cons of investing in the investment fund.
If you want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.
We might be able to offer more suitable options for your situation, or discounts on the fund compared to what your current advisor is offering.
Who is Bowmoor Capital?
London-based investment fund Bowmoor Capital follows trends and global macro strategy, with its core investing tactic dubbed Global Alpha taking advantage of price patterns in global markets using a long/short, systematic, quantitative approach.
Global Alpha was first conceived in 2003, after extensive and careful planning and development. Based on data that shows financial market trends tend to repeat themselves, this approach is grounded in the principles of trend following.
Herding, feedback loops, overreaction, and confirmation bias are only some of the behavioral biases that influence market participants and lead to the emergence of these patterns. These tendencies, once established, tend to persist for longer durations and outstrip the expectations of many market participants.
How has Global Alpha performed?
Bowmoor Capital’s Global Alpha approach has consistently outperformed benchmarks by taking advantage of rising and bearish market moves, as seen by the firm’s track record.
In particular, the long-term performance is appealing, with a cumulative return of 891.85% as of May 1, 2013. The strategy’s annualized return hit 23.37% over the same period.
Global Alpha’s return so far this year reached 21.40%, and its return over the past 12 months stood at 20.67%.
It has also shown consistent success over longer time frames, with trailing returns of 117.68%, 226.72%, and 789.31% over the past three, five, and 10 years, respectively.
Where is the fund available?
Recently the fund became available on some well-known offshore investment platforms typically used by expats and high-net-worth individuals.
It will soon be on RL360, Utmost International, Custodian Life and many others.
This is great news, but it also means that investors should care about:
- How good the platform/life assurance company is.
- The overall investment considering it is unlikely that Bowmoor will be the only investment in your portfolio.
- How high the fees and charges will be and if you can get discounts on alternative options.
Should you invest in Bowmoor Capital?
Global Alpha creates greater diversification by including both long and short positions, taking advantage of both up and down market swings. Since mathematical models and statistical analysis underpin this quantitative approach, it may reveal trends and patterns that older methods miss.
Just like any other investment options, Bowmoor Capital includes financial risk, especially if the strategy’s assumptions or models are wrong. The strategy’s mathematical models and algorithms may also be difficult to comprehend and execute, so it would be better to consult with a professional to know the right move.
The strategy’s capacity to correctly identify and respond to price changes may be affected by market volatility too. If quantitative models fail to account for market subtleties or unforeseen variables, they may overlook opportunities.
Always weigh the pros and cons of any investment before taking the final step. Always self-asses to know your time frames, tolerance, and the investment basics.
Historically, Bowmoor Capital showed solid performance in terms of returns (as was shown above). However, do note that predictions based on past performance are unreliable. You may not return their initial investment because investment value and income can vary.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
