Local firm changes ‘the Wall Street standard’
After starting his career with New York City powerbrokers, Mina Tadrus relocated to Tampa Bay intent on utilizing proprietary algorithms and unique trading strategies to revolutionize the investment industry.
Tadrus, CEO of Tadrus Capital, and his partnership group launched the quantitative investment management firm from Tampa in 2019. Initially, his financial product was only available to family and close friends.
After realizing the potential for mainstream success, the partners incorporated the firm as an LLC in 2020. Tadrus said innovation requires a unique environment and fresh perspectives, which led him to leave New York’s “old-school mindsets” in the rearview mirror.
“And I think Tampa is going to be the next financial hub,” added Tadrus. “Certainly, in the State of Florida. Some people think it’s the Miami-Boca (Raton) area. I actually disagree.”
People around the region and nation are now asking Tadrus to lend his insights.
Leadership at the University of South Florida’s Muma College of Business recently tapped Tadrus, 36, to serve as a panel advisor. Nasdaq.com, Yahoo Finance, the New York Post and the International Business Times used the local investor as a source in the last two weeks.
According to its website, Tadrus Capital is the world’s first private high-yielding and fixed-income quantitative hedge fund. Tadrus utilizes artificial intelligence-based high-frequency trading models to offer clients 2.5% monthly returns, or 30% annually.
“We believe that Wall Street has it wrong,” said Tadrus. “And people don’t even realize that it’s wrong.”
He noted that various assets double in value daily, yet clients typically receive 5-7% annual returns. Most investors, explained Tadrus, are “long” on U.S. equities. That means those people are still bound to those stocks for an extended period when various factors cause a significant market downturn.
Tadrus said many investment firms believe “short selling,” or betting that an asset will drop in price, is too risky. His company actively shorts assets and utilizes automated “stop-loss” orders to limit risks and take profits.
A stop loss is an order to buy or sell a stock once it reaches a specific price. Tadrus said that and two other unique aspects set his firm apart from typical Wall Street institutions.
“We also do high-frequency trading, which allows us to take advantage of microscopic volatility in markets,” he said. “And we don’t trade equities.”
Equities, or stocks, are typically traded from 9:30 a.m. until 4 p.m. However, firms can buy and sell assets – precious metals, oil and currency, among others – “around the clock.”
Rather than possessing one distinct edge over traditional models, Tadrus said his team thinks “outside the box” and collectively addresses various issues. According to its website, the Tampa-based boutique hedge fund now features $5.5 billion in portfolio buying power and has provided 7.5% quarterly gains since its inception.
Tadrus said that buying power is “not a dangerous amount of capital,” as the algorithms complete all trades and stop-loss settings ensure profits.
“So, we don’t listen to any quote-unquote analysts,” he added. “We don’t really care what market events are happening around the planet. Macro events are completely irrelevant to me and our perspective.”
While he declined to name the organization until a formal announcement, Tadrus is also an incoming board member for “one of the largest nonprofits” in the Tampa Bay area. He said its work focuses on kids and families, his most passionate causes.
Like many people, the region’s beaches and live-work-play atmosphere brought him to the area. He believes that will also help it become a financial hub and noted that when people feel mentally healthy and effective, they typically “crush” their daily tasks.
Tadrus said he and his team have “some crazy ideas” they hope to implement in the coming year, although he admitted they are a bit costly and could require new partnerships. He also plans to license his algorithm to “pre-existing, massive funds that have been struggling.”
“For the right fund, this could be a local game changer in the area,” said Tadrus. “And, of course, our preference is Florida funds. Specifically, Tampa Bay area funds – this is home.”
December 30, 2022at6:00 pm