In search of an edge: CTAs launch into swaps trading

Systematic hedge funds are looking to new markets for a competitive advantage

Cutting edge: CTAs are looking for new ways to apply their model-driven approach

Systematic funds sometimes struggle to convince investors they are truly different from one another, but two of the biggest – Aspect Capital and Cantab Capital Partners – have taken a step they think will lift them above the crowd. In recent months, both have started to trade interest rate swaps for the first time. Aspect, which manages $6.5 billion, allocated 5% of the firm's portfolio to interest rate swaps trading in July. That figure might increase in future, says Anna Hull, L