The Equity Long/Short strategy is offered as a separate account for advisors and individual investors.
The strategy utilizes the digital signal trajectories of 2,200 public companies to invest in those equities most likely to surprise the market during the next earnings reporting cycle. The investment objective is to produce absolute and relative returns regardless of market conditions, while protecting the portfolio during market downturns.
Targeted annual returns range from high single digit to low double digit with 5-8% volatility. More numbers.
Holdings will include long and short positions and may include stocks, equity indices, options on equities, and options on equity indices. The long and short portfolios are built to be diversified and typically hold between 25-40 stocks when invested. Upon entry, no single position has ever exceeded 4% of the total portfolio value.
The portfolio mixes equity asset classes—roughly 30% large cap, 30% mid cap, 40% small cap—and a focus on risk management utilizing a proprietary risk-on/risk-off digital indicator. Modest leverage is often deployed and when it is deployed, it is always to reduce the net long or net short exposure of the portfolio - thereby intending to reduce the beta risk of the portfolio.