CCTRACK’S METHODS AND STRATEGIES
We are a global provider of FX asset management solutions using quantitative strategies and an array of unique system-based applications to generate absolute returns in areas including risk parity, alpha models and FX overlay. Our multi-strategy hedge fund targets global financial institutions in North America, Europe and the Asian markets.
FX Overlay is a hedging strategy to partially or fully manage foreign exchange exposure. FX Overlay can be passive with the sole objective of reducing cash flow volatility, or it can be more active with the goal of maximizing yield and or momentum forecasts. Overlay is used by investors and corporate hedgers in a variety of ways. CCTrack provides advisory and execution services for our clients.
ParityTrack is a strategy designed to provide high risk-adjusted returns using extremely liquid and actively-traded products. It is comprised of global equity index futures, global fixed income futures, commodity futures, and foreign exchange. The use of FX as an asset class serves to provide further diversification among asset classes utilized.
CTATrack is a strategy designed to provide high risk-adjusted returns using Foreign Exchange spot, forwards, and non-deliverable forwards as well as non-FX futures contracts. The strategy mixes momentum, mean reversion, and correlation to other markets across varied time periods to generate an uncorrelated portfolio. We use active G30 FX and liquid futures and have varied holding periods from minutes to months.
SkewTrack is a strategy that uses a relative value approach to enter into a long volatility biased options portfolio. It currently uses the OTC foreign exchange market to find opportunities using extremely liquid and actively-traded products. SkewTrack has a low correlation to equities and other global indices, while still providing investors with returns during lower volatility regimes.
We may all do well to breathe, stop fretting about complacency, and concentrate more on inconsistencies. Markets go from overbought to oversold all the time. We should stop shouting about how good or bad they have been and think harder about what doesn’t make any sense. Central bank policy seems to be at the center of fear. Many are talking about global growth recovery negating the need for easy money. Further, many see the end of QE and negative rates as the end of the bull market in equities. Central banks now use forward guidance as a policy tool, rendering any statement, any utterance so much more important. View Investment Letter
Lessons learned in 2017 will set up how 2018 unfolds. The question is which lessons will prove the most significant. Global growth clearly improved in 2017—every asset class gained for the second year in a row—despite trials such as hurricanes, floods and growing political tensions. Equities had their best returns in a decade and bonds rallied, despite growth and nascent inflation, as commodities gained as well. The surprise was in the US, which saw the FOMC raise rates three times. Growth in the US rose more than expected, although the US Dollar fell 13%—the first yearly fall in five years. The biggest winners in FX were Emerging Markets, again beating Developed Markets. Volatility across most asset classes was at record lows. Economic stability and low real rates were cited by most as the main drivers of low volatility in 2017. View Investment Letter
"Love tyrannizes all the ages; but youthful, virgin hearts derive a blessing from its blasts and rages, like fields in spring when storms arrive." – Pushkin, Eugene Onegin History books will have a special tab for November 2017. This was a month when the least volatile and most hated rally in equity markets changed dramatically. The sentiment toward all risky assets shifted from one of constrained support to almost irrational exuberance. View Investment Letter