HEDGED EQUITY

OBJECTIVE

Seeks to provide minimized drawdowns while maximizing upside participation

 

PROCESS

The Logica Hedged Equity (“LHE”) strategy employs a quantitative/mathematical approach to seeking superior risk adjusted returns across a wide range of market conditions, regimes, and economic cycles through a core focus on trading equity markets against complementary asset classes. The strategy utilizes proprietary selection, trading, and allocation models, to construct a portfolio that balances and optimizes “risk on” equity market exposure alongside “risk off” flight to quality exposure that exhibits conditional negative correlation. Specifically, LHE’s portfolio construction process and risk mitigation procedures, employ multiple quantitative metrics and methodologies to allocate and optimize capital amongst various offsetting macroeconomic exposures in a way that seeks to best achieve the objectives of participating in equity markets while hedging their varying risk regimes and crisis environments. The proprietary sources of alpha are based primarily in trading and timing skill and related models, alongside the goal of achieving the ideal balance in pursuit of rigorously risk-controlled equity market exposure. Given this objective, LHE accepts a reasonable level of directional market exposure and overall correlation to equity markets but is also broadly diversified, consistent with generating excess returns with a capital preservation mindset.

LONG VOLATILITY | ASYMMETRIC ALPHA
NEGATIVELY CORRELATED ALPHA | CONVEX CRISIS ALPHA