ALPHA DEFENDER
SOLVING THE PROBLEM OF DRAWDOWN
PROFIT PROTECTOR
“Just Hedge it.” – Jean-Marc Bloch-Lambert, CIO - Pentagon Alpha Defender Fund
Your better investment future depends on solving the problem of drawdown.
When markets go down, portfolios suffer losses: 46% of trading sessions are down sessions.
So, why not using a strategy that benefits from down moves to protect and to profit hence enhancing your returns? You can make profits when others are not even recovering.
BELOW THE IMPACT OF MISSING THE MARKET'S BEST AND WORST DAYS EACH DECADE
SINCE 1930: MISSING THE WORST DAYS MATTERS MOST!
YOU CAN BETTER CAPITALISE FROM MARKET DECLINES TO PROFIT FROM THEM.
YOU ALSO WIN ON YOUR DEFENSE, WHAT PROFIT PROTECTOR IS ALL ABOUT.
CORRECTIONS ARE ALWAYS A COSTLY REALITY: OUR SOLUTION SOLVES THIS PROBLEM
SOLVING THE PROBLEM OF DRAWDOWN
How to be invested in the long term trends while avoiding the intermediate declines?
That is where we offer the solution to best monetize your long term profit success.
At Pentagon, our approach is transdisciplinary: using intersecting skillsets seeking to take controlled and fixed risk.
Our overall investment process is backed by macro and quantitative analysis (cross-assets) to filter data, and to improve probability-weighted decision making.
Goal is to maximise efficiency of trade expression.
We solely use index futures (no options) allowing for accurate expression of our views for down profit capture, with pre-defined downside, and convex upside.
SOLUTION: MAKE PROFITS DURING EQUITY MARKET DECLINES
Our strategies are designed to capture profits during market downturns
It enables investors to gain low risk exposure while protecting from drawdown and profiting from them: delivering Absolute Returns while offering Downside Protection by going short only, one day at a time.
Our strategies capitalize on downside moves only.
2 sub-funds with 2 Index futures strategies revolving around sound principles: Active Risk-Management rule-based, Cross-Asset Flow methodology and Strict Money-Management parameters with NO overnight position: Objectives are Capital Preservation, Downside Protection; Steady Capital Appreciation with low volatility, Negative Correlation with traditional indices; and Absolute Returns with Superior Risk-Adjusted Returns: Uncorrelated Alpha.
DIFFERENTIATED SOLUTION
To cope with exposing investors to downside risk
To deliver downside protection and profits when markets fall
Our strategy is designed to profit from intraday down moves in stock index futures markets
Pentagon's 5D Profit Protector for 5 Diversification Dimensions:
1.Dynamic Hedging Alpha Solution
2.Downside Protection
3.Decorrelation benefit: declines become Profit
4.Drawdown sterilization as overlay strategy
5.Day session strategy only: No overnight position
LinkedIn page/ 5D Profit Protector virtual room:
https://www.linkedin.com/events/5dprofitprotectorvirtualroom-an6739262964311851008
Our strategies and methodologies are greatly derived from legendary Market Wizard Monroe Trout's strict risk-controlled approaches.
Monroe Trout – The Best Return That Low Risk Can Buy
https://askreporter.com/2019/03/monroe-trout-trading-edge/about
Consistency, stability, integrity and superior performance.
We cultivate our values in our program performance, organization, operations and as principals.
Our combined experience includes managing money, researching and developing trading systems for Multi-billion-dollar hedge funds and Industry Legends: Monroe Trout
We had been advising buy-side firms such as UBS Brinson, UBS O'Connor as well as managers such as Kingdom Holding Company and Soros Fund Management, Lombard International Assurances.
Some of the brand name firms we have worked for: Trout Trading, Willowbridge Associates, Chesapeake Capital, Virginia Retirement System.
For additional information, if interested party - Professional / Qualified Investors only, as per MIFID directives - prospective investors can request documentation at alpha@pentagonleaders.com
OUR SOLUTION IMPROVES RISK REWARD PROFILE OF INVESTOR'S PORTFOLIO
Within a global macro "big picture" for long term capital preservation and excess risk-adjusted returns (pure Alpha) our solution is compatible within any portfolio allocation along with most asset classes: ranging from international Equity Indices to less liquid assets such as Private Equity or even Real Estate exposure.
Our strategies have zero to negative correlations with major asset classes.
Therefore, by combining them along with strategic allocation - Stock Index or Equity exposure, and any Bond/Credit/PE/RE exposure - investors can gain an edge in capital preservation, limiting downside risk and achieving superior risk-adjusted enhanced returns: that is our "hedging" solution.
When locating a strategy with negative correlation if it offers positive returns, investors can magnify this effect by leveraging the uncorrelated returns by utilizing such strategies as an overlay strategy.
We have been commissioned by institutional investors and asset allocators to fact-check the benefits of such portfolio management approach rather than the conventional stand-alone investment funds approach:
feel free to request your PM Overlay research at alpha@pentagonleaders.com
Using an award-winning systematic proprietary model*, our strategies are designed to dynamically align equity market exposure to ever changing risk environments.
The goal is to help investors stay invested while having downside defense are in place that will help them mitigate downside risk and profit from equity market downturn.
The objective is to reduce drawdown thus minimizing adverse impact on returns.
Your investment always keeps your strategic focus while our fund dynamically adjusts market exposure based on the trading signals generated by our quantitative strategies.
The rule-based model generating the hedging signals identify macro & technical market data, behavioral changes in trends as markets shift from volatility regime change and risk-driven environment.
Mission Benefits
• 10 years track record history of Alpha Defense / Equity Downside Defense
• *Award-Winning strategy: CTA Intelligence award - Best Specialized CTA 2016 on the S&P 500 Futures*; today enhanced; and now also available on the Dax Futures index for 5D Profit Protector (developed by Pentagon since 2018 Q1)
• Invested only during market declines, and stepping aside during rallies
• Disciplined methodology that avoids over-trading, over-leverage and behavioral bias pitfalls
• Reduced drawdown, profit from downside, overall smart hedging
• Improve risk/reward profile of your portfolio: increase Sharpe and Sortino Ratio by a wide margin
• High efficiency during market downturns: e.g. profit-taking phase, sharp/short correction, reversal
• Transparency, liquidity, robustness of a Luxembourg fund structure for increased security of operations (compliance, valuation, reporting, regulatory tasks)
Profit Protection Alpha Solutions:
2 Compartments: 2 Indices: 2 margin levels: 2 currencies
E-mini S&P 500 futures
9% margin-to-equity in USD
NEW OFFERING in EURO
Open for subscription in 2021
DAX futures
6% to 18% margin in EURO
For additional information, if interested party - Professional / Qualified Investors only, as per MIFID directives - prospective investors can request documentation at alpha@pentagonleaders.com
Past performance is not necessarily indicative of future results.
Investments involve risk of loss and may not achieve its objective.
MISSING THE WORST DAYS IS EVEN MORE IMPORTANT: if an investor could make full profit during only the 10 worst days of market declines in 2020, annualized return would go from 18% to 105%
OUR VALUE PROPOSITION
TO REWARD INVESTORS WHEN MARKET FALLS
TO GAIN DURING ANY DOWN DAY
TO INCREASE ANNUALIZED RETURN
“To enhance risk management beyond naïve diversification, investors should reoptimize portfolios with a focus on downside risk, consider dynamic strategies, and depending on aversion to losses, evaluate the value of downside protection as an alternative to asset diversification.“
From T. Row Price/CFA Institute research
When Diversification Fails
About Monroe Trout*: https://blog.topsteptrader.com/two-lessons-from-monroe-trout
Tom O'Donnell's discussion of how important it is to incorporate 'defense' into your asset allocation:
https://www.eisneramper.com/portfolio-investors-odonnell-ai-blog-0519/
And Tom's AlphaMaven video presenting the benefits of the investment solution
https://vimeo.com/414523755/be5353aca8
Pentagon's CIO, Jean-Marc Bloch-Lambert's interview with AlphaWeek Magazine also available in MYRELATIONS.EU
https://www.myrelations.eu/Financial-Markets_a625.html
https://www.alpha-week.com/profile-pentagon-alpha-defender-fund
For additional videos on Bloomberg TV, please click on the links below