Downside Control Matters 

Multiple Risk Control Techniques

Our strategy implements three non-traditional risk control elements to provide safety during significant market downturns
  1. Volatility Investing

    S&P index options tend to appreciate from increases in implied volatility during market dislocations

  2. Dynamic Leveraging

    Instantaneously adjust equity allocation via index option/futures to reduce exposure during market declines

  3. Risk Balancing

    Long treasury note futures tend to experience gains during market volatility in a flight to “safe-haven” assets

The Foundation of our Strategy

Our strategy incorporates highly sophisticated investment derivatives techniques typically found only in very large banks and insurance companies for hedging their own internal trading desks. We invest in volatility as an asset class. We efficiently combine a diversified portfolio of index options, futures, and ETFs. The result is an approach that can potentially outperform the broad capital markets while significantly reducing the losses of major equity market declines such as 2008.

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