Motivation
We believe that any investment portfolio benefits from systematic returns and exposure to liquid alternatives, CTAs. We use independent return drivers in highly liquid markets to efficiently construct our systematic J8 Global Absolute Return Strategy (J8 GARS) that is an enhancement over CTA beta and offers portfolio protection and portfolio diversification. Thereby we become an integral part of our investors' success.
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First things first: Why do liquid alternatives, CTAs, matter?
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Long-term performance of the SG CTA Index (Barclay CTA Index prior to 2000) and the S&P 500, starting with $100 on 31 December 1979. Source: Barclay Hedge, Societe Generale, ICE, J8 Capital Management LLP.
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The value proposition of liquid alternative investments includes profitability over an entire business cycle: portfolio protection may result from directional trading long and short positions in rising or falling markets, and through portfolio diversification from uncorrelated returns with other asset classes.
Often, liquid alternatives have lumpy return streams. Liquid alternatives trade exchange listed futures and options. They are highly liquid and offer portable alpha as overlay. Most liquid alternatives are systematic. Systematic investment strategies offer the advantage of having a repeatable investment process which reduces behavioural bias and operational risk. These systematic strategies are supported and derived from testing with long and deep data histories. Current most innovative systems are constructed by marrying data science with modern portfolio theory.
The graph below shows how liquid alternatives add value to an investor’s portfolio. We use CTAs as an example for liquid alternatives. We see that liquid alternatives can generate long term positive returns and may offer portfolio protection during significant market down turns. Also, liquid alternatives tend to have shorter, and less severe drawdown phases, than traditional “buy-and-hold” equity investments. The linear trend line suggests that currently may be an optimal time to invest in this asset class.
Our constant research on return drivers and markets cumulates in the development and improvement of our signal engine and the incumbent robustness of our J8 Global Absolute Return Strategy (J8 GARS).
From our research, we also derived a pure CTA beta offering, the J8 CTA Index.
Often, liquid alternatives have lumpy return streams. Liquid alternatives trade exchange listed futures and options. They are highly liquid and offer portable alpha as overlay. Most liquid alternatives are systematic. Systematic investment strategies offer the advantage of having a repeatable investment process which reduces behavioural bias and operational risk. These systematic strategies are supported and derived from testing with long and deep data histories. Current most innovative systems are constructed by marrying data science with modern portfolio theory.
The graph below shows how liquid alternatives add value to an investor’s portfolio. We use CTAs as an example for liquid alternatives. We see that liquid alternatives can generate long term positive returns and may offer portfolio protection during significant market down turns. Also, liquid alternatives tend to have shorter, and less severe drawdown phases, than traditional “buy-and-hold” equity investments. The linear trend line suggests that currently may be an optimal time to invest in this asset class.
Our constant research on return drivers and markets cumulates in the development and improvement of our signal engine and the incumbent robustness of our J8 Global Absolute Return Strategy (J8 GARS).
From our research, we also derived a pure CTA beta offering, the J8 CTA Index.
How and Why
J8 Capital Management (“J8”) was founded in 2012 in London.
We offer highly liquid, diversified, uncorrelated and cost-efficient systematic investment strategies. They focus on portfolio protection, attractive risk-adjusted returns and superior diversification benefits. Our strategies are derived from empirical observations and fundamental economic rationale. Our systematic investment process reduces behavioural bias as well as operational risk.
We gain investment confidence through rigorous research, scientific strategy development and testing with long data histories.
We offer highly liquid, diversified, uncorrelated and cost-efficient systematic investment strategies. They focus on portfolio protection, attractive risk-adjusted returns and superior diversification benefits. Our strategies are derived from empirical observations and fundamental economic rationale. Our systematic investment process reduces behavioural bias as well as operational risk.
We gain investment confidence through rigorous research, scientific strategy development and testing with long data histories.
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