Kinkopf Capital Management : KCM S&P SELECT (Managed Client Accounts)

Summary

The S&P SELECT Managed Account Program can best be categorized as a systematic, non-discretionary, trend following, swing program. Unlike its flagship S&P program that uses key market internals, price will be the primary deterministic component to initiate trades. A trend following component allows for the possibility of short-term trend captures.

Investment Strategy

The “S&P SELECT” managed account program started proprietary trading on 7/1/2015 and is now open to investment via its Disclosure Document . Unlike its flagship S&P program, S&P SELECT has a minimum investment of only $25,000. The S&P Select Program follows the same trading Methodology with the following key differences. The core system is now governed by the Octagle component for trade placement using only the highest ranked trade parameters to initiate trades. Rather than using key market internals, price will be the primary deterministic component. Trades may occur less often but for longer durations. A short term trend component is introduced to allow for short term trend capture where possible. Volatility is expected to be considerably lower due to the nature of trade selection process. The volatility scaling component will be performed by trade selection rather than contract quantities.

Risk Management

Mr. Kinkopf expanded its risk management process by incorporating multiple trade control parameters to its core system. The new component called Octagle, provides a multidimensional governance on trade parameters. In July of 2015, Ken has integrated Octagle as a VoS component where trade selection is scaled rather then varying contract quantities. Mr. Kinkopf expects these component changes will further reduce volatility while allowing additional capture opportunities.