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%)


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.