IFIT Advisory AG : Contrapuntal Fund SP

Summary

The Fund pursues a rule based, directional, absolute return strategy. The Fund seeks above average long term growth, with low correlation to stocks and bonds but with a volatility and maximum drawdown potentially lower than traditional stand alone stock market investment. The Fund calls it strategy “Systematic Global Macro”.

The Global Macro hedge fund strategy can be defined as dynamic global asset allocation. Global Macro hedge fund managers have the ability to take positions in any instrument in any market throughout the world. Asset allocation is the most important determinant of profit in any portfolio and the ability to switch assets from one market to another means that the Fund should be well placed to reap profits from many different sectors as the potential arises. Generally, a Global Macro hedge fund will invest to take advantage of trends in broad economic sectors (such as currencies, bonds, or stock indices) and the Fund is no exception.

Diversification over many asset classes should enable the Fund to benefit from whatever sustained trends occur in each market segment. While it is undoubtedly true that correlation between asset classes (positive or negative) tends to strengthen in periods of crisis, in more normal times the benefit of wide diversification is that more opportunities will present themselves and profit can be sought in one or more upwardly trending asset classes at times when trends are not evident in other asset classes. In general, this can lead to a smoother and greater return on equity than investment in any single asset class such as stocks.

Investment Manager: Aspeqt Capital Management Ltd, George Town Grand Cayman.

Investment Advisor: IFIT Advisory AG, Voltastrasse 61, CH-8044, Zurich, Switzerland. IFIT Advisory AG is registered with VQF. This material is neither a solicitation nor an offer. The value of an investment may go down as well as up. Past performance is not necessarily indicative of future results.

Investment Strategy

The Fund invests almost wholly through futures or forward contracts traded on regulated world exchanges from North America and Europe to the Far East and the Southern Hemisphere. The Fund’s potential portfolio of over 100 instruments consists of stock indices, bonds, notes and interest rates, currencies, metals (precious and industrial), grains, energy, meats, soft commodities and various other instruments such as carbon emission futures and volatility and commodity indices. The Fund takes long only positions, except in currency pairs.

A mechanical, rule based approach recognizes that human emotions and subjective judgment may perhaps be better replaced by a rule based system which simply follows the flow of trending markets.

Risk Management

The Fund manages its leverage from a margin perspective. The average margin usage is expected to remain low. Initial individual position size is limited to risk no more than a small percentage of overall capital on each individual position. Overall portfolio risk is limited to around 31% of funds although this can increase somewhat in strongly trending markets.

Sector risk is limited to a fixed percentage of capital per sector. Again, sector risk can increase somewhat above this level in strongly trending markets. Risk is calculated in relation to a position’s pre-defined exit level although fast markets, gaps and unexpected slippage can result in an exit at a worse level than that reflected in the planned fixed exit point.