Xplor Capital Management, LLC (Xplor) is a global quantitative asset manager providing sophisticated individual and institutional clients with an innovative alternative investment. Xplor emphasizes the pursuit of both absolute and risk-adjusted performance based on a fundamental belief in continual dynamic research with a commitment to on-going investor support.
The Xplor Global CTA Program applies Xplor’s Dynamic Weighting Method (DWM), our proprietary quantitative investment approach, to a universe of worldwide futures and forward contracts. This program began trading July 16, 2004.
Xplor’s various trading strategies can be categorized for convenience into several disciplines:
• fundamental information synthesis — strategies that analyze quantitative fundamentals such as interest rates, earnings, and macro–economic data which correspond to price movements in the relevant instrument. The strategies then project, using the fundamental data, the direction, extent and duration of future price movements.
• momentum recognition — strategies that assess an instrument’s strength or weakness (either on an absolute basis, relative to its history, or relative to some peer group) and target the strongest (weakest) for long (short) positions.
• trend recognition — strategies that seek to capture large portions of significant price moves, both up and down, while minimizing losses in volatile or sideways market action.
• counter-trend recognition — strategies that seek to capture limited reactionary moves against established trends or within trading ranges (consolidation areas.)
• temporal focus — strategies that seek to exploit time-sensitive phenomena of the trading markets, for example, high frequency and pattern matching analysis, inter- and intra-market forward curve analysis, option-based analytics.
Xplor seeks to construct from the available combinations of strategies and markets, on a dynamic basis, a portfolio which exhibits superior risk-adjusted return. Xplor relies on a proprietary analysis of market statistics which characterize the performance of possible combinations to arrive at a portfolio it believes exhibits superior potential for profit, consistent with minimizing the potential for large losses.
This process continually reassesses market conditions and the potential for favorable (or unfavor- able) performance of any given combination of strategy and instrument as well as the portfolio as a whole. The dynamic nature of the portfolio makes it impossible to predict its exact composition at any future date. As such, there can be no assurance that opportunities in the various markets and strategy disciplines result in gains to a client’s account. Moreover, losses in a subset of market and strategy combinations can cause significant unexpected losses to the client account if these combinations are heavily represented in Xplor’s active portfolio construction.