For over 20 years our investment philosophy has remained centered around one core goal – empowering the investor by providing the most valuable investment returns achievable. Simply put, the value of any investment can be measured by the increase in risk-adjusted return that a portfolio realizes as a result of adding that investment to an existing portfolio. The most valuable investments exhibit certain distinct characteristics – they produce "alpha" or excess return over that of the asset class in general by identifying and exploiting specific market inefficiencies; they are absolute return vehicles that produce positive returns in most investment environments; and their returns exhibit a low or negative correlation to other investments in the portfolio, thereby reducing the volatility of the overall portfolio and producing positive returns when they are needed the most.

Alternative Investments Offer More Value Than Most Traditional Assets

Traditional assets, like stocks and bonds, comprise the majority of most portfolios and routinely fail in one or more of the above qualifications. Traditional asset management focuses primarily on realizing the inherent return or risk premium available in equities and fixed income instruments through a long-only, fully invested approach. This return, often referred to as beta, is relatively easily attained and has become increasing inexpensive for the investor to acquire. Alternative investment strategies, on the other hand, offer investors significantly more investment value, since they are designed to produce alpha, or return in excess of the beta of a particular asset class. Our alternative strategies have the further advantage of producing returns that are not highly correlated to traditional investments and hence provide significant portfolio diversification benefits.

Generating Alpha Through the Identification and Exploitation of Market Inefficiencies

The generation of alpha, or excess return, is achieved by exploiting specific market inefficiencies. Our research process is designed to identify these inefficiencies, and then to develop strategies capable of exploiting them for the benefit of our investors. We are a research driven firm, deriving our strategies from the historical observation of markets and investment psychology. As a result, our strategies are quantitative, objective, and robust. Each strategy has been historically validated through simulation, stress testing, and real-time trading. The implementation of our strategies is achieved through a systematic process which promotes consistency and investment discipline.

Reducing and Managing Portfolio Risk

The risk of any portfolio can be reduced by adding investments that exhibit a low or negative correlation to the other investments within the portfolio. By providing investors with non-correlated investment strategies that truly diversify the portfolio, we are simultaneously reducing portfolio risk and increasing the risk-adjusted return of the entire portfolio. The concept of diversification is a powerful one that we use internally as well. Our investment programs include a broad portfolio of markets, including fixed income, equity indices, foreign exchange, and commodities. We also typically diversify our programs by strategy as well, including a combination of price-based trend and mean-reversion algorithms along with various macroeconomic and fundamental models. The end result of all this diversification is reduced risk, higher risk-adjusted returns, and a more efficient portfolio.

Producing Positive Returns in a Variety of Market and Economic Environments

Our alternative investment strategies are absolute return oriented, recognizing that an investor’s ultimate goal is to realize positive rates of return, regardless of the performance of specific market indices. An absolute return orientation creates a strong bond between the investor and the investment manager. We invest right along side our investors and our fee structure is highly incentive oriented. What is good for our investors, is good for us.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS CAN BE SUBSTANTIAL. NO REPRESENTATION IS BEING MADE THAT ECLIPSE CAPITAL MANAGEMENT, INC. WILL BE ABLE TO ACHIEVE PROFITS SIMILAR TO ANY SHOWN IN PAST TRADING PERIODS. INVESTMENT WITH THIS MANAGER INVOLVES SUBSTANTIAL RISKS AS THE MANAGER USES LEVERAGE WHICH CAN INCREASE THE VOLATILITY OF THE INVESTMENT.