Hedge Funds

Matsumoto and Aurora team up to start quantitative equity fund

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Merrill Lynch Investment Management's Sergio Matsumoto has joined forces with Manish Aurora, the quantitative pro behind the current FX trading platform of FXCM, to start the Vidya Metric quantitative equity fund in September, with as much as $25 million in assets.

The fund uses an automated projection of cash flows which is applied to fundamental analysis. Vidya will look at the entire capital structure of companies across the bulk of industrial sectors. It will avoid financials, utilities and airlines because the fund favors a cash flow analysis rather than a balance-sheet analysis.

Also joining Vidya is Mark Zmijewski, the