Frequently Asked Questions

Does the strategy have daily liquidity?

Yes, the strategy has high daily liquidity (multi-billion dollars) which is possible due to the high liquidity in its underlying investments.

Do the performance numbers include any fees for managing the strategy?

No, the performance numbers do not include any fees for managing the strategy. The fees will be thin and can be discussed - contact us.

Why should I have someone manage this strategy for me when I can do it myself?

There are many nuances to running the strategy on a daily basis which we have several years of experience and expertise on - for example daily margining, maintaining a hedged portfolio, etc. A slip on any of these elements can have a material impact on portfolio returns. We believe it would be cost effective for investors to outsource the strategy to a centralized service provider, which would drive economies of scale, the benefits of which will be passed back to investors. Investors would hence avoid making fixed investments in personnel and systems to do it in-house, the latter usually being more expensive as well as less flexible in case of a change in overall cash management needs. Contact us to discuss in more detail.

How has the strategy fared during the recent market turmoil?

We expect the strategy to outperform on a mark-to-market basis with a sharp decline in equity markets. Our observations during the recent market turmoil and others in the past are in line with those expectations.

What other comparable products exist in the market?

To our knowledge, there is no other comparable investment available in the market which provides consistent outperformance over TBills without sacrificing on one or more of credit risk, duration, and liquidity.

If this could be done, why has it not already been done?

This could probably be said for any innovative product! That said, we believe the thin margins in productizing this strategy are a natural deterrent to entrants. We also believe that there is massive potential for this strategy, and that we will see enough volumes to make this a viable business despite the thin margins.

Is there leverage embedded in your strategy?

No, our strategy is unlevered and does not require the use of borrowed funds.