Florida may be a haven for hedge funds but one fund based in Ft. Lauderdale is expanding to the Big Apple. Olympian Group of Investment Management, led by founder, senior managing principal and chief investment officer Michael J. Levas, is opening a new office in New York where he will oversee an estimated six traders, compliance and IT support personnel.
Why leave sunny Florida? Despite the Sunshine States tax advantages, Levas says the move to Manhattan is a no brainer. Its fragmented down there. There are people coming down but it just doesnt have that energy or the whole nuance that New York has, he told Traders Magazine. This is still the financial capital of the world. When New York speaks and moves, the rest of the world follows.
Levas started Olympian in 2003 and he says he is having a good year despite continuing turmoil in the European markets, a jittery economic recovery in the U.S., and the government shutdown that was in high swing at press time. Levas says that his global macro fund saw a return of 12.57 percent gross net of fees, which is 11.42 percent net for the month of September 2013.
Whats his secret? I really depend on the bond market and what is going on in the macro environment, said Levas. People say this market is destroyed but I dont believe that. As long as the retirement boards in the U.S. have to pay their pensioners, they are buying up corporate debt at astronomical levels. The firms in the Russell Index are flush with cash. Theyre having dividend increases, having buybacks and youre seeing M&A.
Levas is bullish despite some inevitable future fixes he sees in the market. Will we see corrections? Absolutely, but they will be fast and furious and we will move on, he said.
Levas New York plans include building out his funds to fulfill four strategic aspects: Trading and research; alternative investments and hedge funds; asset management; and private capital and equity investment. We want to help companies with IPOs, he said.
And unlike social media and Web 2.0 firms, Levas is not looking for recent graduates from M.I.T., The Wharton School or Cornell University to fill out his trading desk. Were looking at bringing on very talented people who are going to be trading and were looking to start another fund, he said. He lauded his new portfolio manager who has experience with long-short equity. We are running global macro now and were looking to expand our options investments and our options research. We think this is a great area that can be exacerbated, especially focusing on the institutional side of the business, he said.
Levas said he has little concern about the current U.S. government shutdown and is confident that lawmakers will re-open government and avoid a default. This is the United States of America. Were not going to give up what every founding father, president and Congress has done since the beginning of this country, he said. What would a default do? Levas did not hold back. First, it would destroy the dollar, he said, adding, then youd have an incredible market move on the downside, which would destroy our credit and take away the dollar from the being the currency of the world.
Although Levas has used algorithms and dark pools in the past, he is pulling away from these trading tools that he once relied on from his brokers. Further, Levas has seen a profound change in the relationship between the buyside and sellside since the Crash of 2008. The sellside are now technology providers to the buyside, said Levas.
There are some great firms that have great research and the bulge bracket firms have the same types of things. They have the North American research, the LatAm, Asia and so on but you have certain boutiques that have specialized stuff,” he said, adding. “And that is their advantage.
When it comes to high-frequency trading, Levas is no speed demon. Im a DMA guy. I put my limit orders in and I let that market come to me. I price that market on a daily basis and I say Okay, this is a security I am likely to buy or sell and this is the price I want to put it in at or sell it at, he said. HFT doesnt matter much to Levas because he’s not holding that stock for three seconds before selling it. I dont care if something gets executed in the millisecond, he said.
Levas is confident about the prospect of two women overseeing the U.S. capital markets, S.E.C. Chairwoman Mary Jo White and Federal Reserve Chairwoman nominee Janet Yellen. I think Yellen is great, he said. I think its great that we have a woman candidate. If we continue on this path, get past the debt ceiling and focus on the business of the country and the growth, well, I am very bullish on the U.S.
He added, We have strengths and weaknesses but you have to believe in the U.S. after all.
Olympian Group of Investment Management
AUM: N/A
Desk: 3 traders
Broker List: 5
Avg. Commission: N/A
OMS: Multiple Broker Platforms
