Introducing Equi Dynamic Alpha
Apr 17, 2023
Today, we are excited to announce the launch of Equi Dynamic Alpha – a strategy originally launched as part of our Multi-Strategy Portfolio and returned 16.28% net of all fees in 2022.
This strategy is managed by Itay Vinik, Equi’s CIO, and executed by the Equi investment management team.
Equi Dynamic Alpha is an absolute return fund with an emphasis on high convexity opportunities. It is designed for those who favor higher returns despite higher volatility.
Target Return = 17%
Target Volatility = 12-15%
How It Works
A discretionary macro strategy uses a top-down approach that is combined with market microstructure analysis to translate our views into actionable investment ideas.
Our dual focus on short-term trade opportunities and long-term macro views allows us to navigate changing market conditions and capitalize on new opportunities.
Why Equi Dynamic Alpha is Unique
A Multi-Timeframe View on Trading
Keen observers of markets will notice that there is a fractal nature to markets. There are certain patterns that are often repeated in the short-term during intra-day trading vs. patterns that are expressed over many months or years. Our team trades across both short and long-term time frames. Core positions are expressed over multi months, while other positions try to take advantage of short-term arbitrage opportunities.
Low Correlation to Equities and Broader Hedge Fund Universe
Low correlation to broader hedge fund universe:
0.16 correlation to the HFRI Fund Weighted Composite Index
Low correlation to peers:
-0.21 correlation to the HFRI Macro (Total) Index
Low correlation to traditional risk assets:
0.31 correlation to the S&P 500 Index
Loss prevention is as much of a priority as alpha generation
We target a daily maximum loss number of around 2% and reduce positions to avoid losses beyond that. Avoiding the geometric nature of losses and leveraging risk-reward models in a meticulous manner allows us to avoid significant drawdowns that often impact macro funds.
The Results Are In
In 2022, we launched Equi Dynamic Alpha as part of our Equi Multi-Strategy Portfolio, which gave us the opportunity to evaluate its performance against 11 external managers that we believed to be some of the best-performing on the market.
Our proprietary strategy outperformed all other strategies in the multi-strategy portfolio returning 16.28% net of all fees in 2022, and outperformed the S&P 500 by just over 23%.*
Get Access to Equi Dynamic Alpha
Limited Time Founders’ Share Class Seats Available.
Towards Equilibrium Inc. (“Equi”) and Equilibrium Ventures Inc. (“EquiV”) communications are intended solely for informational purposes. They should not be construed as investment, legal, tax, or trading advice and are not meant to be a solicitation or recommendation to buy, sell, or hold any securities including funds mentioned. Any such offer or solicitation can only be made by means of the delivery of a Confidential Private Placement Memorandum to qualified eligible investors.
EquiV is registered as an investment adviser with the Texas Securities Board Investment Advisers Act of 1940. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the entity by the Securities Exchange Commission.
Past performance is not indicative of future results and an investment in an investment fund involves the risk of loss. The investment fund is speculative and involves a high degree of risk. The information contained herein is as of the date indicated, not complete and is subject to, and qualified in its entirety by, the more complete disclosures, risk factors, and other terms and conditions contained in the respective offering documents of the respective investment funds.
Before investing in the fund, you should thoroughly review the offering documents with your legal, tax and investment advisors to determine whether an investment is suitable for you in light of your investment objectives and financial situation. An investment in the fund is not suitable for all investors. Performance results are net of all fund and investor adviser expenses and incentive fees, and reflect the reinvestment of interest, capital gains and other earnings. Performance results for 2022 and all subsequent periods are unaudited and are subject to adjustment. The returns shown may vary from the returns for each individual investor based on the timing of capital contributions and/or different fee arrangements.
A signiﬁcant portion of a fund’s investments may be invested in assets in illiquid investments and, therefore, will be subject to less frequent liquidity. The portfolio composition discussed herein is accurate only on the date set forth herein. The portfolio composition will change, and you should not expect the same or similar portfolio composition to be maintained at any time in the future. Asset allocation does not guarantee a proﬁt or protection from losses in a declining market. Investments, when sold, may be worth more or less than the original purchase price.
Illustrative Benchmarks include S&P 500 Index and HFRI Fund Weighted Composite. Equi Dynamic Alpha Strategy does not mirror that of the Illustrative Benchmarks and returns, volatility, and structure may be materially different. S&P 500 performance obtained from Bloomberg. References to S&P 500 are included for illustrative purposes only. It is not expected that funds will make investments in S&P 500 companies. Funds are expected to invest with a strategy that is different from a strategy of making equity investments across an index. Accordingly, investors should not expect that an investment would provide exposure that is similar to an index investment in S&P 500 companies or any other specific benchmark. No guarantee is made that the funds will meet its objectives or reach its target returns.
Estimated performance is unaudited and is anticipated to differ from audited, final performance numbers. Calculation of estimated performance varies by underlying investment based on the investment and its strategy. For investments made via external fund vehicles, performance provided by the manager is used for estimated performance or if not available historical returns and volatility are used to estimate performance. For those investments made through the broker, P&L from the broker is used. Despite our targeting a daily maximum loss of around 2%, limitation of daily losses to any given percentage amount cannot be assured.
Performance reflects that of the fund strategy as a whole, rather than that of any individual investor. Performance is calculated based on a pro-forma, full fee paying investor who invested at inception of the Fund and has not added to their investment or redeemed capital since. Returns were calculated on a monthly, time-weighted basis. Annual returns were calculated by geometrically linking monthly returns.