When volatility catches you out, directors outperform.
Finally, in 2018, after five years waiting on the side-lines volatility returned. It is in these market conditions that corporate directors demonstrate their superior understanding of their company by selling its stock ahead of markets sell offs and entering at more favourable valuations. By understanding and implementing these principles, the Altana Director Alignment Strategy (ADAS) both anticipated the sell-offs of February and October – returning respectively 3.87% and 3.22% – as well as protected its downside risk only giving back –1.15% in a December when the S&P 500 had dropped –18% intra-month.
ADAS outperformed in critical periods during 2018:
Strategy: ADAS is a systematic US equity long/short UCITS, focused on $1bn+ mid- and large caps
– Intuitive: Corporate insiders know more than anyone about their shares. ADAS seeks pure trading signals to align with corporate insiders
– True Alpha: When correctly filtered, directors’ dealings generate true alpha. ADAS generates long and short profits independently – the holy grail of absolute return
– Positive Convexity: The strongest signals are generated ahead of the largest moves. ADAS stop loss methodology further adjusts net exposure as prices rise or fall
We encourage all our investors and prospective investors to read the latest News Flash from ADAS PM Alphons Vermorken:
To read the latest News Flash from ADAS PM Alphons Vermorken please click here