Abingdon is a discretionary global macro manager that analyzes conventional wisdom to find catalysts that lead to major price movements. It is important that this fundamental analysis be based on simple and easily understood facts. Technical analysis across multiple timeframes helps to guide the selection of potential entry levels and stop loss levels consistent with the thesis and in line with an asymmetric risk to return profile at the outset of the trade. Abingdon trades a portfolio of 0-4 positions constructed of futures, options, and cash. A concentrated high conviction portfolio is what offers true macro returns.
The strategy has a short to medium term horizon focused on only the most liquid futures markets, which allows Abingdon to apply strict risk management utilizing tight downside risk limits. Risk controls are applied on the portfolio and position level with predefined downside at the outset of every trade managed by either premium at risk or stop loss orders. Percentage based risk management from entry and last price is paramount.
The resulting portfolio is one in which overall market exposure can remain low for extended periods of time and rise episodically. The strategy is neither geared towards trend following nor countertrend trading. The objective is to profit from occasional price adjustments in particular markets rather than to run portfolios with particular tilts to collect risk premia. When no particular opportunities present themselves, the default position is 100% cash.