The Evolution Directional Volatility (VIX) Strategy employs a proprietary quantitative process to examine the interaction of Mean Reversion, Momentum  and Term Structure to tactically adjust our exposure to various VIX related products. Our objective is to achieve long-term capital growth regardless of the prevailing market environment with lower correlation to the S&P 500 and other volatility benchmarks  (Newedge Volatility Trading Index  and the HFRX Relative Volatility Index)       

 

Investment Goals

 

  1. Capture the positive attributes of a short volatility position during sustained bull markets

  2. Participate in the appreciation of volatility during a market correction (10-20% loss in equity markets)

  3. Participate in the appreciation of volatility during a bear market (losses greater than 20%)


KEY DRIVERS OF VOLATILITY


Why Volatility?

Volatility is an asset that does not rely on interest rates, dividends or rising stock prices which makes it an attractive opportunity as a new return driver and portfolio diversifier.

Where does the strategy fit in my portfolio?

Allocating to a directional volatility strategy as an equity substitute may be compelling as the strategy seeks to achieve positive returns in bear markets.  The strategy can also be viewed as a portfolio diversifier because of reduced correlation to the other major asset classes and may result in an improved risk reward ratio.

Investors must be willing to accept a high degree of risk and should expect large fluctuations in the value of their investment which may include large losses in principal over short periods of time.



STRATEGY DOCUMENTS

OTHER STRATEGIES