Motivation
We believe that any investment portfolio benefits from exposure to liquid alternatives, CTAs, that use independent global macro-economic return drivers systematically. Our J8 Global Absolute Return Strategy (J8 GARS) aims to offers portfolio protection, portfolio diversification, and capital appreciation. Thereby we become an integral part of our investors' success.
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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 directionally trading long and short positions in rising or falling markets. Portfolio diversification may result form offering uncorrelated returns with other asset classes.
Often, liquid alternatives have lumpy return streams. Liquid alternatives and CTAs trade exchange listed futures and options. They are highly liquid and offer portable alpha as overlay over existing traditional and alternative portfolios. 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. Many liquid alternatives use global macro-economic principles to support their strategy design. Most innovative systems are constructed by marrying data science with modern portfolio theory.
The graph above shows how liquid alternatives, CTAs, add value to an investor’s portfolio and 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 a sensible time to invest in this asset class.
Our constant research on return drivers and markets cumulates in the continuous incremental improvement and incumbent robustness of our J8 Global Absolute Return Strategy (J8 GARS).
As spin-off from our research, we also derived a pure CTA beta offering, the J8 CTA Index.
Often, liquid alternatives have lumpy return streams. Liquid alternatives and CTAs trade exchange listed futures and options. They are highly liquid and offer portable alpha as overlay over existing traditional and alternative portfolios. 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. Many liquid alternatives use global macro-economic principles to support their strategy design. Most innovative systems are constructed by marrying data science with modern portfolio theory.
The graph above shows how liquid alternatives, CTAs, add value to an investor’s portfolio and 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 a sensible time to invest in this asset class.
Our constant research on return drivers and markets cumulates in the continuous incremental improvement and incumbent robustness of our J8 Global Absolute Return Strategy (J8 GARS).
As spin-off 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.
Our objective is to offer highly liquid, diversified, uncorrelated and cost-efficient systematic investment solutions, which focus on portfolio protection, attractive risk-adjusted returns and superior diversification benefits. They are derived from empirical observations and fundamental macro-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.
Our objective is to offer highly liquid, diversified, uncorrelated and cost-efficient systematic investment solutions, which focus on portfolio protection, attractive risk-adjusted returns and superior diversification benefits. They are derived from empirical observations and fundamental macro-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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