514 Capital Partners : 514 Fund

Summary

We develop quantitative models that trade over 25 major liquid global markets namely fixed income, indices, currencies, and commodities. 514 Fund, the firm’s flagship Fund, trades in markets that present the best asymmetrical risk/reward characteristics. The Fund seeks to achieve capital appreciation through an attractive risk-adjusted return while bearing a low correlation to traditional equity and fixed income investments. It follows a predominantly trend-following, systematic trading strategy that aims to capture performance from both long and short positions.

Investment Strategy

We start with the principle that market participants drive prices. Through the use of market sentiment indicators, we design different models that aim to capture this relationship. Our systematic models track how these indicators evolve over time and continuously re-adjust themselves accordingly. We spend our time assessing new strategies, new markets, and new time-frames. Our research objective is to find incremental improvements that contribute to the overall statistical robustness of our system. We are agnostic to fundamental data.

Risk Management

Our trading edge must be protected through proper risk management. In that way, we seek to optimize our systems to capture better asymmetrical risk/reward opportunities. Once we identify, quantify, and parameterize the risks, we can achieve more stability in our performance across different market conditions.