DISCOVER THE PATTERNS. We use intricate systems to understand the investment universe.

PARK CAPITAL TAIL PROTECT

  • Hedging solution against extreme events affecting portfolios of hedge funds
  • Aims to provide long only volatility protection with systematic management
  • Has been able to produce significant gains in periods of extreme volatility
  • Has achieved limited losses in periods of falling volatility through carry cost minimization
  • Launched in October 2009: achieved results in line with expectations
  • Volatility spike capture: all 3 volatility spikes detected since October 2009
  • Proven hedging effectiveness and cost efficiency: we believe this solution is significantly better than passive long volatility solutions

APPROACH

We believe that due to the inherently difficult task of predicting tail events, it is vital for hedge fund portfolios to always carry “long tail protection”. Our research has led us to believe that the best way to achieve this is through a systematic, actively managed, long-only volatility-based strategy, with good liquidity.
Our aim is to add value through a systematic approach which seeks reliability and repeatability and which takes the emotion out of trading, especially during chaotic periods. We seek to offer investors protection at all times through our long-only equity volatility strategy, whilst active management can potentially reduce the carry costs inherent in tail-risk protection strategies.
The Tail Protect investment process is 100% systematic in nature and combines two distinct and independent strategies each with their own risk budget. At present, each strategy is active across three markets, again each with its own risk budget. The accompanying chart gives an overview of the investment process.
StyleTail Risk Protection
Investment ApproachLong Equity Volatility
Volatility TargetNot Applicable
parallax background

PERFORMANCE

YEAR TO DATE

10.0%

LAST 3 MONTHS

10.0%

1 YEAR

12.0%

3 YEAR

27.8%

5 YEAR

40%

SINCE INCEPTION

51.7%

PERFORMANCE BY CALENDAR YEAR

2018

1.9%

2017

10.0%

2016

12.8%

2015

7.5%

2015

9.8%

As at May 2019
Inception Date 15th August 2009

Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.

Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in USD and is based on a representative investment product or products that follow the programme. An example fee load of 1% and 20% has been applied.