Our Approach
High-quality professional staff with industry experience
Rigorous research
Our trading technology, including a proprietary research platform
Operations excellence
In our opinion, the bedrock of our performance —and the key to our future expectations—is our continuous investment in these key areas.
You can learn about our people by exploring our team page. Below you will find information on our:
- Philosophy and Methodology
- Research
- Diversification and Risk Management
Philosophy and Methodology
Our investment thesis is that a rigorous research process can reveal can reveal the strength of a systematic, disciplined operational approach to trading. In layman’s terms, we use quantitative tools to identify possible trends in the markets when they are in their earliest stages. The program’s “expertise” is to evaluate systematically the amount of risk capital to allocate to a given trade, to determine the eventual holding period and to exit with discipline when conditions indicate.
Our research into technical trading began in 1995 and is the basis of our flagship program—the Drury Diversified Trend-Following Program. Launched in 1997, the program allocates risk capital across 6 sectors and over 50 liquid markets, including a high degree of exposure to commodities. We acknowledge that market participation can be challenging and past performance is no guarantee of future success. At the same time, we are proud of our track record and the contributions we have made to client portfolios. Our decades of intensive research have helped us refine the trading techniques that strive to maximize profits while minimizing portfolio volatility.
Research
In evaluating trading ideas, we seek the optimal balance between pursuing opportunity and controlling risk. In pursuit of achieving this balance, our main research tool is our proprietary research platform. This has been under continuous development since 1995 and provides the means for testing trading hypotheses. Between the origination of an idea and its possible deployment we follow a strict series of steps:
- Voicing of an idea that might lead to a hypothetical trading idea. Trading hypotheses tend to come from experience and observation, rather than from intense data mining. “What if…”
- Crafting of a trading rule to embody the logic of the voiced idea.
- Conduct research simulations for either validation or disconfirmation of the hypothesis.
- Evaluate results for robustness, including performance across different multi-year time periods.
In fact, our trading systems “evolve” rather slowly and deliberately over the years. Nonetheless, as the key tool in our toolkit, we have developed a research tool that enables us to test for proof of concept a great many ideas that will not actually be adopted for live trading.
Diversification and Risk Management
Our participation in a market varies in relation to the identified opportunity, with position sizes calibrated to suit the liquidity, correlation, volatility and relevance of each market. To cushion risk, our portfolio diversification is done on an extremely broad basis. The use of multiple sub-systems reduces risk allocations per trade as the overall system performs many small trades across many markets.
Risk control is not limited to the trading approach. Infrastructure matters. At Drury Capital, we invest in next-generation technologies and top people to ensure that we have the best resources available to us. Disaster recovery procedures across multiple locations have been honed to prevent single points of failure. Diligence, integrity and redundancy are watchwords throughout the firm.
