Multiple Risk Control Techniques
Our strategy implements three non-traditional risk control elements to provide safety during significant market downturns
S&P index options tend to appreciate from increases in implied volatility during market dislocations
Instantaneously adjust equity allocation via index option/futures to reduce exposure during market declines
Long treasury note futures tend to experience gains during market volatility in a flight to “safe-haven” assets
The Foundations 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.