Strategy Overview

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Capital Protection

Owl

The Owl structure is for investors looking to protect their capital and leverage the value of rising interest rates.

 

By using Treasury coupons and defining loss limits, the strategy invests in long term options structures which set a fixed floor on the investment but deliver the potential for several percentage points of participation in a bull market. 

 

If you’re saving for an upcoming purchase, or are already overweight equity exposure, this is a perfect vehicle to lock in value yet retain an upside kicker.

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Yield Enhancement

Condor

The Condor strategy is designed to generate returns from selling out of the money options spreads, earning returns in sideways markets. 

 

The portfolio is rebalanced monthly, limiting the amount you can lose while collecting premium for net writing options. 

 

This strategy works well as a complimentary allocation to a long equity portfolio. By allocating a tranche of a portfolio to Condors, investors can reduce drawdowns and generate income when the stock market is underperforming.

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Market Participation

Seagull

The Seagull strategy is for reducing volatility while still generating performance alongside the market. A self funded protection mechanism, the strategy forgoes upside to finance downside coverage.  

 

The Seagull is rebalanced quarterly, allowing for moderate upside capture, but dramatically reducing the impact of drawdowns. 

This fits as an equity like portfolio exposure for investors looking to reduce variance and smooth returns. 

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Market Participation

Heron

The Heron strategy is a dynamically managed volatility buffering strategy. It provides a similar exposure to the Seagull, but by using options across different durations, it seeks to minimize protection costs and maximize coverage.

 

It can be used on individual equities or indices, and is a low cost way of locking in portfolio value and optimizing option decay profiles. 

 

Heron is for investors who are looking to lock in value of long term investments, or for capturing the momentum from high volatility names.

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Leverage

Falcon

The Falcon strategy is for investors looking to add additional risk premium capture to their equity allocation. 

 

By replacing a portion of a long equity allocation with options, the strategy captures the skew premium while replicating a long stock exposure with a weekly dynamic rebalance. 

 

This has the effect of adding a degree of leverage to the portfolio and is best for long term holders looking to amplify their returns.

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