Investcorp-Tages Eckhardt Systematic Trading UCITS Fund
Launched in October 2020, the UCITS Fund aims to address investor challenges in today’s uncertain market environment by trading volatility signals across major markets to generate alpha. The strategy differs from traditional CTA programs in that it uses the rate of change of volatility as a key measure to capture trends. It employs models that target alpha before break-out moves become discernible, thus providing what the manager believes to be a level of portfolio protection during periods of extreme volatility and exhibiting strong “all-weather” characteristics.
The UCITS program employs strategies across four system groups:
- Short-term volatility trend captures price changes across short-term time frames in periods of changing volatility
- Pattern recognition uses proprietary algorithms to seek contrarian profit opportunities during periods of consolidating or reversing markets
- Risk-off alpha systems aim to capture alpha in equity and commodity markets in periods of volatility spikes
- Sentiment alpha systems analyse market positioning/sentiment data to identify both contrarian and early trend opportunities
Eckhardt Trading Company has over 40 years experience of pioneering research from Bill Eckhardt and his team, applying evolutionary computing and risk-based utility theory with in-depth volatility analysis.