Investment Process

  • The Fund will be adamant about investing in only the most liquid markets and instruments that it can get out of quickly if necessary.  The Fund will engage in actively trading a portfolio of long and short equity and fixed income securities utilizing a Global Macro strategy.  This strategy allows the ability to trade multiple instruments in multiple asset classes around the world at any time. 

 

  • The entire portfolio construction process is anchored in risk management and will identify what a specific trade strategy could add in terms of overall risk to the portfolio.  The way that the General Partner approaches risk is that regardless of broad market valuation metrics or general attractiveness of an investment opportunity, the General Partner will always want to know how much the portfolio can risk at any given time should it necessitate executing major shifts in asset allocation.

 

  • The General Partner will commonly run 5 to 10 themes, where each theme may consist of one to five different trades.  The General Partner looks for asymmetric risk-return profiles; for example, risking 5 percent to make 10 or 15 percent, or risking 25 percent to make 50 to 100 percent.

 

  • The Fund uses a disciplined approach to managing risk.  It employs measures of risk in the broad markets and the sectors to reach conclusions about when and where chances of success are highest.  It gravitates to investments where demand is in control, then employs statistical measures in a sell discipline so that positions are hedged or sold and the proceeds reallocated if conditions change.  The fund objective regarding draw-downs is to have an overall stop loss at 20 percent, at which point the General Partner may close any or all positions to reevaluate themes and decide whether it makes sense to keep them or not.

 

  • The Fund does not expect to generate significant dividend or interest income.  The Fund does not expect to establish and hold a diversified portfolio of equity positions for extended period but does have the ability to take diversified positions in a large number of individual country markets, the result of being that the Fund’s investment returns are not expected to parallel broad U.S. market indices.  Likewise, the Fund’s performance is not expected to be dependent on broad market U.S. returns (i.e. S&P 500), but on the General Partner’s ability to buy and sell securities profitability.  The Fund’s performance is expected to have little if any correlation to the U.S. broad market and is intended to provide a vehicle for positive investment returns under adverse market conditions or favorable market conditions.