Why Mu Hat?
We named our firm Mu Hat after the notation for an estimate of expected return. That is the central problem in investing: expected returns are not facts we can look up. They have to be estimated using data, theory, and discipline.
The hat matters. It reminds us that every estimate is uncertain, and that the quality of the estimate determines the quality of the decision. Our work is to make those estimates better and then size them with humility. We place robust estimation at the heart of our process: collecting better data, testing it carefully, and committing capital only where the evidence is strongest.
The Mu Hat logo is an homage to the wax seal pressed into a 1976 first edition of Stephen Ross’s The Arbitrage Theory of Capital Asset Pricing.
Three pillars of the investment engine
Peer-reviewed research
We stand on the shoulders of giants. Our investment process is built on decades of academic research and we regularly review the literature to stay abreast of the latest findings. However, new results are only incorporated after they have been tested and validated in-house.
Real world application
Capacity, trading costs, liquidity, and risk are part of the investment decision from the start. An attractive signal can fail in practice if it cannot be traded efficiently or sized responsibly. We prefer signals that remain useful after the real constraints of a live portfolio have been applied.
Data driven insights
Our internally developed software leverages high performance computing and machine learning to uncover hidden risks and opportunities. But this is not enough. A candidate signal must be supported by economic intuition and tested beyond the sample in which it was found. We do not reward a backtest for being attractive; we ask whether the relationship is likely to survive when the next period begins.
Hound Dog Fund, LP
Hound Dog Fund, LP is Mu Hat’s flagship U.S. equity strategy. The Fund seeks long-term capital appreciation and superior risk-adjusted performance through a portfolio of U.S. listed equities. Security selection is driven by proprietary software developed in-house to replicate, test, and extend decades of asset-pricing research.
Fund documents are gated.
The Private Placement Memorandum, Limited Partnership Agreement, Form ADV, and the DDQ are released inside the investor portal to accredited investors only. Methodology language is public; figures are not. Accredited investors may receive the PPM, LPA, ADV, and DDQ.
Invest