Traditional asset classes such as equities and bonds are the key building blocks of the investment portfolios of both instutional and individual investors. However there are, particularly in the current environment, limits to both the potential returns and diversification benefits that can be achieved from equities and bonds alone.
For those willing to take a high level of risk with part of their overall investment portfolio, Patronus Managed Futures Strategy allows clients to invest in a strategy that offers potentially high returns in a way that is uncorrelated to traditional asset classes and indeed can deliver its best returns when markets are performing poorly.
Patronus Managed Futures is a discretionary, intraday trading strategy utilising equity index futures to make short term directional trades on equity indices. The ability to be long or short of the market means that returns are driven by the trading, not the market direction. It is an absolute return strategy.
The strategy employs leverage to magnify returns (which leads to commensurately higher levels of risk). Trading is conducted purely on an intraday basis so all invested funds start and end each day in cash. This not only allows for tight risk control but also in a world where liquidity is an increasing concern for investors, it allows investors access to their funds at a day’s notice. In pursuit of high returns, investors in the strategy must be willing to accept significant volatility in their capital, although drawdowns are managed with constraints acceptable to the strategy.
Our CIO, John Prior CFA, FCSI, has been managing similar strategies since 2006.
To see what has been happening over the last quarter, read our Managed Futures Strategy Quarterly Report.
For further information about this service, have a look at our Patronus Managed Futures Strategy brochure.
If you would like to talk to a Broker to discuss what Patronus can do for you, please contact us.