Change remains the only consistent trend in the markets today. Recent downturns in the world equity markets due to growing uncertainty are causing institutional and individual investors to rethink strategies that just months ago seemed worthwhile. Asset management protection has replaced asset appreciation in the mind of most investors.

Technology has also changed not only the way we live but also how we invest. Technological advances have created fast changing environments with little or no time to adjust. Decisions now must be made and executed instantly for proper wealth management.

This has led to alternative investment strategies such as hedge funds as mainstream products that exploit leading edge technologies to survive and profit in these quickly adapting times. SP Trade Investments Capital Ltd., a hedge fund, has developed and utilizes technology that successfully navigates world financial markets though a proprietary and fully automatic trading system.

 

Absolute Returns
Financial Success independent of Stock Market Performance
Reduction of risk via portfolio diversification
Low correlation to traditional investments such as stocks, real-estate and bonds
Bear Market Protection
Liquid and Transparent

 

The late 1970s saw market participants move away from traditional commodity futures trading and launch brands such as indices, interest products, currencies and treasury bonds. But the principle stayed the same: a specified price for a specified product was determined for a specified future date.

"To hedge" originally meant "to protect against financial loss". Hedging was the idea behind the world’s first hedge fund, founded by Alfred W. Jones in 1949. Jones’ aim was to create an alternative investment asset management portfolio with financially successful returns even on investments that showed low or even negative growth when compared with traditional stock and bond markets. Jones wanted to prove that investor profits are possible within both bull and bear markets by using a variety of financial instruments.

Hedge funds are an "all-weather-investment" and are able to achieve profits from rising as well as falling markets. The right hedge fund in the right portfolio can minimize risk and optimize wealth management performance. Funds generally hedge their positions and are successful financially as a result of this asset management strategy.

Hedge funds are NOT highly speculative. This was a myth which derives from a time when hedge funds were an elite vehicle available only to the wealthy and influential. Only investors with $1 million at their disposal were accepted as members of the exclusive club of the hedge fund investment world. The eligibility requirements in combination with the fact that hedge funds are not subject to the same regulatory authority as other investments created a great deal of mystery and speculation about their products and fallibility. Today, such rumors are not the reality of the hedge fund world. In many cases hedge funds can reduce risk and volatility in a traditional portfolio- see Why SP Trader. Furthermore, because hedge funds are able to use a significantly greater number of financial instruments they are able to achieve significantly higher gains than traditional investment funds. And today, hedge funds are highly regulated.

In the same way that common sense tells us not to place all our eggs in one basket, The SP Trader Fund does not encourage investors to place all their assets in a hedge fund. Hedge funds should be used as a powerful and effective diversification instrument within a traditional portfolio and in combination with other investments - proper wealth management.

In order to reduce the risk and increase returns, an investment of up to 25-30 percent as a part of a traditional investment portfolio is recommended.

Hedge funds differ from traditional investment funds in a number of significant ways:

 

Hedge funds have a single goal – to achieve gains in rising as well as declining markets
Hedge funds have no legal restrictions in terms of what kinds of financial instruments they may invest in and are often in tax havens or in tax reduced areas
Hedge fund managers are allowed to make use of all existing financial instruments to achieve gains.
Hedge funds have capital gains tax and other tax benefits.

 

Today, over 7000 hedge funds exist worldwide and manage capital worth more than $950 billion. In comparison, there are 60,000 traditional investment funds worldwide (such as mutual funds) with more than $2.25 Trillion under management. To review SP Trader Investments Capital Ltd's worldwide rankings compared to other hedge funds, click Ranking.

The overriding goal of a hedge fund is to decrease portfolio risk via non- or negative-correlation. Imagine a portfolio that consists of two risky assets: one that wins when the sun shines and the other wins when it rains. Combining both, one has a portfolio that always wins no matter if the sun shines or if it rains. Now, add a third asset that wins when it is cloudy and, in combination, the portfolio covers all possibilities.

The theory of a modern portfolio is that the risk of a single investment should be of no importance. What is important is how that investment acts in combination with other investments in the whole portfolio. Modern portfolio theory understands that there are no absolutes and so looks to cover all possible outcomes by enhancing overall portfolio performance and improving overall investment quality.

 

Above average gains combined with a low risk of losses - what more could investors want!? To achieve this goal for our investors, SP Trader developed a technical computerized trading system. The computer software platform electronically initiates buy and sell orders through technical investment research and investment analysis. As the markets absorb news and other factors that influence prices, the program adjusts its positions - immediately modifying existing orders based on money management and correlation changes. The result can be summarized as follows: minimized losses and increased profit potential coupled with profitable trades in both bull and bear markets. See our Historical Returns.

SP Trader makes use of varied financial strategies to profit from both short-term and long-term momentum and volatility plays as well as other signals. The system's careful selection process identifies only the best signals, which are then used to establish a position.

 

SP Trader Fund’s investment philosophy strives to achieve maximum growth of capital within defined risk limitations.  To meet these targets, SP Trader Fund employs a portfolio of objective, technically-based financial strategy trading systems and a multidimensional diversification financial strategy which allots capital to different trading strategies and time frames. The selection of component strategies and time frames follows a rigorous quantitative analysis that considers the liquidity  and volatility of markets traded, types of financial strategies employed,  trade duration, risk of loss, and probability of achieving  performance objectives.

These factors, along with measures of correlation between the system components, attempt to ensure synergy at the portfolio level while limiting risk by maintaining diversification across multiple dimensions.  We believe our philosophy of diversifying among time frames and financial strategies sets SP Trader Fund apart from the bulk of advisors and mutual funds who diversify amongst market sectors only.

The resulting multi-dimensional approach gives SP Trader Fund the ability to profit in virtually any environment, be it rising or falling markets, quick or long term moves, or trending versus oscillating markets.

Further, the priority is given to capital maintenance over profit maximization. Proprietary risk asset management plays the key role in the SP Trader Fund's investment strategy. Effective money management helps minimize the risk profile of the invested capital. The computer trading system continuously monitors all risk factors, volatility and historical context of each traded trend to precisely define the optimal size of each position.

 

Managed futures investments are intended to generate long term capital growth and capital gains by providing portfolio diversification. Investing in an SP Trader Investment Product may add substantial diversification not otherwise available through traditional investments - such as mutual funds. A key reason to invest in a managed futures (Alternative Investment) product is the potential to generate attractive returns while protecting against risk. This is possible because managed futures products historically have not been correlated to traditional markets. Further profits are protected as they are produced in a tax haven or tax reduced area. See our Historical Returns.

 

Offshore hedge funds are most often investment companies that are domiciled in tax havens that fully maximize hedging techniques to reduce risk. They have no legal limits on numbers of investors. These are often best suited to most investor needs where the investment pool is shared among a large 1000+ group of investors and investors can reduce their tax liability for capital gains which increases their financial success and return on investment.

Both the SP Trader Investment Futures Growth Fund and Portfolio Futures Growth Fund have a proven track record of performance and historical returns. The Funds trade Futures using a proprietary trading system designed to produce double digit returns per month, even during down markets, due to the ability to spot trends, while adhering to strict risk controls.  Please see Ranking to compare this Fund to other Hedge funds worldwide.

 

The recent fluctuation in world markets shows that long-only equity portfolios have trouble making money in downward cycles. For continued portfolio performance, a fund that hedges its trades is the only way to limit losses in any economic environment and this is good asset management and good wealth management.

For more about the Fund please download our Prospectus or Brochure at Download Information & Forms.

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SP Trader Investment Futures Growth Fund
SP Trader Portfolio Futures Growth Fund
SP Trade Investments Capital Ltd.