Cayman Islands-based investment manager New Trend Capital Management, a subsidiary of Zurich-based New Trend Capital Partners, has launched an algorithm-led equity hedge fund to US investors.

The New Trend Equity Fund is the company’s first hedge fund and aims to invest in highly liquid investments, holding 30 - 50 active positions with no more than 10 per cent held in a single position.

The fund will use a computer software programme to identify trending US stocks which, the fund said in a statement, would remove the challenges of human biases.

“Our proprietary algorithm analyses large quantities of data and removes emotion from investment decisions. It remains constant through all market conditions, providing stability and reliability as we seek to identify emerging trends and increase exposure as the trend continues. The algorithm also provides a system of stop losses which is an important part of our rigorous risk management process,” said Steven Granot, portfolio manager, New Trend Capital Partners.

Minimum investment is $100,000 with the possibility of monthly redemptions. The fund is managed by Mr Granot - previously director of US Equities at UBS and vice president of US Equities at JP Morgan - and Marc von Rohr - previously director of Asian Equities at UBS.