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.
"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
The surprise of October was that the seasonal bias broke down and risk moved higher despite a host of uncertainties ranging from the New Zealand, German, and Czech elections; the Catalan independence vote; ongoing investigations into Russia-Trump connections; a number of US Republican Senators publicly fighting with the President; and ongoing threats from North Korea and Iran. View Investment Letter
September was a difficult month for many investors. The FX market flipped from being dollar offered to bid, bond markets went from bid to offered, and equities—despite higher rates and much uncertainty—held bid across most developed markets. Oil rallied and gold fell, while corn rose and copper fell. The hurricanes and earthquakes in September mixed poorly with politics and policy. The FOMC clearly signaled a December hike and followed through on previous signals by cutting their balance sheet, setting in motion a process to whittle back talk of debt monetization. View Investment Letter