SHARPEDGES
A MULTI-STRATEGY PORTFOLIO
INVEST WITH AN EDGE
SHARPER STRATS FOR MODERN MARKETS
Innovative strategies exploiting proven investment edges with rules-based algorithms.
Adaptive to a variety of market conditions, making it an ideal core strategy. Or, select a sleeve or two to optimize your other involvements.
Significant alpha generation from consistent returns with low volatility.
Trend-filtered to control portfolio exposure and weightings.
Diversified by objective, asset, and timeframe.
Multiple implementations, including leverage, for all risk profiles.
THE UNDERLYING
STRATEGIES
ALTERNATIVE STRATEGIES
Whatever the market environment
OPTIONS
Whatever your risk profile
There’s an options solution for that
INCOME STRATEGY
An advanced solution for investors seeking excess returns regardless of market direction.
e310
Alternative
A unique complement to traditional portfolios of stocks and bonds.
Customized to fit any risk budget.
Options are power tools for those seeking income, risk management, or speculation.
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They offer asymmetrical returns that traditional portfolios cannot, even in sideways or stagnant market regimes.
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e310 trades S&P 500 index options of multiple tenors. Returns are primarily sourced from the natural time-decay of options (theta), and hedging.
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SPX Index options receive favorable tax treatment as Section 1256 contracts.
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e310 is an active strategy; investors must be comfortable with volatility and the complexities of option trading.
MACRO MOJO
TACTICAL ASSET ROTATION
OBJECTIVE: Maximum Growth, Low Volatility
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Go anywhere. Markets are a movable feast, let’s grab a seat at the right table. Macro Mojo is designed to capitalize on bull/bear trends by capturing price swings in highly liquid ETF’s.
The strategy relies on statistical analysis of price patterns and trends. It will normally hold up to 10 ETF’s among global equity, fixed, and alternative asset markets, including precious metals and crypto. There is no targeted holding period, making it an active strategy. Bearish positions are expressed through inverse ETF’s. The strategy vigorously manages risk and is available in both levered and non-levered implementations.
SHARPE FACTORS
EQUITIES
OBJECTIVE: Maximum Growth, Low Volatility
Quality wins out. The selection process behind Sharpe Factors is what provides the edge. Starting with a universe of highly liquid stocks, it screens for candidates that score highest on quality and value metrics. Trend quality is checked, and up to15 stocks with the highest Sharpe Ratios are selected for the portfolio. The process is repeated each month to keep the line-up fresh. Positions are typically held between 1-3 months. The strategy overlays a market trend-filter to control exposures and manage risk. The result is an adaptive portfolio of high-quality, inexpensive stocks in demonstrated uptrends.
SHARPE REVERSION
EQUITIES
OBJECTIVE: Maximum Growth, Low Volatility
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Let’s generate alpha. This is an active strategy that trades as often as conditions allow. Mean reversion is a powerful concept that provides an exploitable edge in stock picking.
Starting with a tightly screened universe of active stocks, the strategy waits for market leaders to mean revert. Entries and exits follow a strict set of rules, and each position has a volatility-based stop to manage risk. The strategy may hold up to 20 equal-weighted names, split between daily and weekly signals.
HAVEN SENT
TREASURY ETF’s
OBJECTIVE: A Safe Total Return
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Build the ark before it starts raining. We have found that an allocation to Treasuries really helps balance a portfolio. Times of stress in stocks are inevitable, and Treasuries provide ‘crisis alpha’ during market routs.
We source Treasuries through ETF’s with targeted durations, checking the holdings each week for possible adjustment. Treasuries are vulnerable to rising rates like all fixed investments, so active management is critical.
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The strategy selects its holdings based on total return over several look-back periods. Each position is weighted on a composite trend score. The universe of Treasury ETF’s provides great flexibility to capture dynamic changes in the yield curve. The strategy may select inflation-protected securities as well as inverse positions when rates are rising.
FIXED DYNAMIC
BOND ETF’s
OBJECTIVE: Income and Safety
Don’t reach for yield. Low interest rates are a challenge, so many investors take additional risks to generate income. It’s been said that more money has been lost “reaching for yield” than in all the world’s financial scams combined. Extending duration or owning lower credits are the two most common examples.
Fixed Dynamic screens for bond and bond-like ETF’s each month to select five with favorable risk/reward profiles. The universe includes corporate bonds, preferred stocks, and floating-rate funds. Duration and credit quality will vary, depending on performance over several weighted look-back periods. If rates are rising our durations will shorten, and vice versa. Inverse funds can help protect against a sustained trend of rising rates.
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​Unlike Haven Sent, Fixed Dynamic will not provide “crisis alpha” during a major risk-off event. Such was the case during the early days of the pandemic in 2020.
AVALANCHE
SHORT EQUITIES
OBJECTIVE: Profitable protection
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Look out below. Bear markets are rare, but when one hits like a hurricane the damage can be substantial. It can take years to recover, assuming you can afford to wait. Rarer still is a short strategy that can add value in both bull and bear markets.
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Avalanche’s design allows it to activate when certain strict conditions are met, and turn-off as conditions change. The key is having the strategy available in the toolkit. There is always a bear market somewhere, and Avalanche hunts for opportunities around the globe.
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The most common implementation utilizes inverse ETF’s, though shorting of individual names and/or ETF’s is available. Avalanche is a form of ‘extreme diversification’ that helps portfolios reduce risk through a full market cycle.
