Trading Cross Connects
(TXC), a new hedge fund incubation firm in Jersey City, and its
strategic partner, seeding firm Bay Head, are planning to seed
and incubate at least four funds this year. The firms are
focusing on high-frequency trading strategies across foreign
exchange, fixed income, futures and commodities.
Ram Rao, director of sales and business development at TXC,
said he is only interested in black-box strategies that hold
positions for seconds or minutes, with no overnight trading.
The firm looks for strategies with a projected Sharpe ratio of
10 or higher. Rao said a Sharpe of 10 to 20 is commonplace
among high-frequency strategies because of their rapid turnover
of positions and large number of holdings. He was unable to