SP Trader Fund, a hedge fund, has developed and utilizes technology that successfully navigates world financial markets though a proprietary and fully automatic trading system.

 

Absolute Returns (see our monthly performance from inception, click on Monthly % to Date)
Financial Success independent of Stock Market Performance
Reduction of risk via portfolio diversification (see Why SP Trader)
Low correlation to traditional investments such as stocks, real-estate and bonds
Bear Market Protection
Liquid and Transparent (download our Prospectus and Brochure at Download Information & Forms)

Hedge funds such as SP Trader 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.

 

SP Trader differs from traditional investment funds in a number of 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. (For more information see Questions)

 

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.

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 that 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. For more information see Why SP Trader.

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.

As well as emphasizing sector and market diversification, the SP Trader Strategic Diversified Program has been constructed to achieve diversification by combining various systems. The systems are driven by powerful computerized processes or trading algorithms, most of which work by sampling prices in real time and measuring price momentum, price volatility, price trends and breakouts. On aggregate, the systems run a large number of price samples each day spread over various markets and in different time frames. The trading algorithms aim mainly to capture price volatility and close out positions when there is a high probability of a change in volatility developing. Some of the trading data trading strategies and time-frames that yield low correlated profit-loss functions.

The core objectives of the SP Trader Diversified Program are to:

 

Produce substantial capital growth over the short and medium-term with a controlled level of volatility commensurate with the substantial absolute return target exploit profit opportunities in both rising and falling markets
Disciplined investment process
Produce favorable performance in difficult periods for equity markets
Provide diversification away from traditional investments and thereby provide enhancement for investment portfolios

 

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

 

To subscribe to the Fund, please click Open an Account.