Optimal Models : Active Beta

Summary

-Optimal Models and Decisions Inc. has been registered as a CTA and managing client accounts since 1996. In January 2007, Optimal Models launched Active Beta. Optimal Models has been granted a 4.7 exemption by the National Futures Association and is open to investment from qualified investors only. For additional details, please contact us to request our 4.7 Exempt Disclosure Document.

Investment Strategy

Active Beta is a quantitative, short-term, long/short, global equity index strategy. Active Beta uses a multi-timeframe pattern recognition and signal filtering processes to produce returns which are uncorrelated to traditional and alternative asset class benchmarks and other investment manager's returns. Active Beta controls risk and generates skill based returns during both rising and falling markets.

Risk Management

Active Beta manages risk by limiting the portfolio exposure and spreading risk equally among each of the traded equity index markets. Through extensive value-at-risk simulations, we estimate Active Beta's one day value-at-risk to be 2.1% with 95% confidence and 4.2% with 99% confidence. Optimal Models aims to automate its operations. This eliminates errors and assures discipline in the execution of the Active Beta methodology. The accuracy of our client accounts is independently verified on a daily basis by our external accounting consultant, CTA Outsource Solutions Inc. Leveraging their expertise and technology, Optimal Models are able to scale its operations quickly and effectively.