Risk Parity

Strategic Allocation Program

The Strategic Allocation Program is designed to offer investors efficient exposure to the risk premium inherent in three asset classes:  global fixed income, global stock indices, and commodities.  Using a risk-balanced approach, the program aims to produce attractive long-term total returns.  Unlike traditional capital allocation approaches where the risk contribution is highly concentrated in equities, a risk parity approach adjusts risk to ensure near-equal risk contribution across and within asset classes.

The Strategic Allocation Program is a systematic, model-based investment program that establishes long positions in a broadly diversified global portfolio of stock index, fixed income, and commodity futures contracts.  The portfolio contains only the most liquid futures contracts traded, cleared, and priced on established global futures exchanges, which minimizes concerns with respect to liquidity, counterparty, and valuation risk. Positions are established and actively adjusted to balance risk contribution.  Additionally, a portfolio-level volatility target model is overlaid to help achieve overall volatility that is significantly more consistent than traditional approaches.

Traded with proprietary capital since 2013, SAP is available as a managed account to 4.7-eligible (QEP) investors with a $5 million minimum investment.

 

GAP VAMI

DISCLAIMER - THE INFORMATION CONTAINED HEREIN IS INTENDED FOR USE BY QUALIFIED ELIGIBLE CLIENTS AS DEFINED IN CFTC REGULATION 4.7.  FUTURES, FORWARD AND OPTIONS TRADING IS SPECULATIVE, INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.  THIS INFORMATION IS NOT A SOLICITATION FOR INVESTMENT.  SUCH INVESTMENT IS OFFERED ON THE BASIS OF INFORMATION AND REPRESENTATIONS MADE IN THE APPROPRIATE OFFERING DOCUMENTATION.

PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE CLIENTS, THE INFORMATION PRESENTED ON THIS WEB SITE IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION.  THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE.  CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR OF ANY OF THE INFORMATION PRESENTED ON THIS WEB SITE.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  FUTURES, FORWARD AND OPTION TRADING IS SPECULATIVE, INVOLVES SUBSTANTIAL RISK, AND IS NOT SUITABLE FOR ALL INVESTORS.