Madison Park Capital Partners, LLC : MPCP Sentiment Trading Fund

Summary

Objective: Madison Park Capital Partners (“MPCP”) is an opportunistic trading firm, which seeks to capitalize on short-term market dislocations within S&P 500 & VIX derivatives complexes. The firm’s philosophy is rooted in the behavioral finance axiom that investors tend to both over-react to “false news” and under-react to “real news".

Investment Strategy

Strategy: MPCP’s trading leverages its proprietary database and extensive research on 13 years of equity and bond market sentiment. MPCP derives sentiment using data mining and computational linguistics to parse the financial press by machine reading roughly 2,500+ articles daily and extracting sentiment from those that are deemed relevant. Approach: MPCP has identified a number of “sentiment evolution patterns”, which the market cycles through over time. Using machine learning it generates trading signals conditioned on these patterns and exploits them across four sub-strategies. Trading is driven systematically with a discretionary overlay to optimize relative value relationships. Platform: MPCP offers its trading strategies via a separately managed account platform designed to relieve investors from the “hedge fund fatigue” of recent years offering its clients full transparency, daily liquidity, 1256 Contract taxefficiency, unique strategy access for IRA accounts and a 0%/20% management/performance fee pricing structure.

Risk Management

Each sub-strategy is has maximum risk weighting based on the sentiment state in which we are trading. Margin to equity ranges between 5%-15% and a maximum notional leverage of no more than 200%.