Ceros AG : Ceros-Neumann Managed Account

Investment Strategy

The manager seeks to exploit opportunities through diversified strategies for both cash and futures markets. The main goal is the preservation and long-term accumulation of capital. The expected yearly return is 15% or more. The core investment is a diversified portfolio of highest-dividend paying companies in the Eurozone. Via the use of derivatives this portfolio is constantly hedged (cross-hedge). Therefore, at all times the managed account is protected against large draw-downs and a stock market crash. In order to obtain additional gains the manager applies various strategies on the regulated financial and commodity markets. These additional gains as well as the received dividends are used to finance the cross-hedge positions. When additional gains and dividends exceed the hedging costs the surplus amount is invested in the stock portfolio. The strategies used to secure additional gains are mainly based on inter-contract spreads and calendar spreads using options or futures to exploit volatility as well as seasonal effects. Through the combination of cash instruments with additional strategies on the financial and commodity markets the manager seeks to have a low correlation to the stock market. In the last years the manager has applied this system highly successful in his proprietary trading. Since September this strategy is open for external investors. The strategy is tradable with a minimum of USD 30.000.