AVR Capital Advisors LLC : AVR Diversified Trading Program (Proprietary)

Summary

The AVR Diversified Trading Program (“Trading Program”) is a systematic, diversified program that seeks to achieve long term capital appreciation with low correlation to stocks and bonds. The Trading Program is managed by AVR Capital Advisors LLC (“AVR Capital”), founded by Mr. Harsha Patwardhan in 2019. Mr. Patwardhan developed the key components of the Trading Program as a portfolio manager at Pacific Life and its subsidiaries. The Trading Program started proprietary trading on January 10, 2019.

Investment Strategy

The Trading Program comprises several underlying strategies that seek to capture primary short-term dislocations and behavioral biases. The strategies are not intended to predict market direction or volatility but instead use the current state of the market to determine whether a behavioral bias exists. The strategies are designed to remain robust and perform over a long period. The research process is based upon employing statistical analysis and to a lesser extent, fundamental analysis, to develop the strategies. The strategies look for, amongst others, mean reversion, trend, volatility and relative value. The Trading Program takes both long and short positions and may hold positions both intraday and overnight. While overnight positions are calibrated daily, they may be between one and five trading days. Periodically, the capital allocated to each strategy is optimized using proprietary models. The systematic nature of the strategies eliminates the emotional bias especially in time of market stress.

Risk Management

AVR Capital has developed a proprietary risk management system. The Trading Program embraces short term volatility in an effort to increase the potential for long-term performance. Each individual strategy and the overall portfolio are structured with proprietary risk parameters.