Looking to generate supernormal profits using modern tech and investing techniques? Looking to hedge your long only blue chip portfolio? Looking to hedge your FX? Want to remove the need to have a view on the movement of the INR/USD?
One of paths towards long-term wealth creation is through actively managed and diversified long-short investment strategies that are objective, rigorous and repeatable. Structured products are developed on strategies leading to risk-adjusted and consistent highly & positive returns. They use a myriad of options trading strategy and quantitative models to deliver annualised returns of more than 50%.
A strategy that invests in the equity market with a unique feature of dynamic Nifty hedging that helps to minimize losses during large declines in the equity market. This feature eliminates the need to time entry and exit into equities. With strong annualised net return of +21% since its inception, this Strategy provides strong long-term compounded returns like an equity fund while reducing losses in large crashes or bear markets.
The investment philosophy at play here uses a quantitative and systematic trading methodology with robust risk management. A systematic quantitative methodology has clear rules for entry/exit of trades, defined trade goals and risk controls which bring discipline into the process of trading and investing. This also helps avoid human cognitive biases, from the most basic greed/fear cycle (which happen at the big trend change points, impacting the returns/risk and long-term track record the most) to others like recency bias, confirmation bias, endowment effect and disposition effect. Recognising that every model or trading methodology will perform poorly at some point based on market conditions, utilizing a portfolio of models which have low correlations with each other in losing periods (meaning that majority of them are not losing together at the same time) reduces portfolio risk, thereby helping avoid large losses. If each individual underlying model has an attractive return profile to begin with, then a portfolio of such models leads to a reduction in risk without a commensurate reduction in returns, effectively driving the reward:risk ratio even higher.
