OUR INVESTMENT STRATEGY
Trident Capital Management was built to be a systematic, diversified, global macro alternative investment manager that strives to preserve capital and add value through proprietary measurement of market appetite for risk.
TRADING SIGNALS
Three distinct models determine the trading signals. The Risk Regime model trades only global equity indices and global sovereign bonds. The Vega model determines the time to go “short” equities. And the Engle model exploits irrational investor behavior across diverse markets. All signals trade independently and net their exposures in the portfolio.
RISK MANAGEMENT
Trident believes that good risk management is key to performance. Trident seeks to manage risk through a three-pronged system. Every position has: 1. a hard “stop”: 2. every position is sized according to: market volatility: and 3. every position has a predetermined “risk budget”, that is, a planned maximum loss for the position. There can be no assurance that Trident’s risk management system will always perform as designed.
PORTFOLIO CONSTRUCTION
Trident employs proprietary mean variance and correlation techniques to build the portfolio. Our goal is to maintain a well-diversified portfolio while participating in those markets that we believe have the highest likelihood of achieving favorable risk adjusted returns.
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PRESERVE CAPITAL. ADD VALUE.
Trident Capital was built to create a systematic, diversified, global macro strategy that provides exposure to global fixed income, equities, foreign exchange, and commodities. Trident features two unique models: the Vega and Risk Regime models, which use proprietary measures of market volatility and risk appetite with the intent of adding stability and consistency to Trident’s portfolio. These models are meant to be especially valuable in times of crisis by either being “short” equity or “long” fixed income, or both by using futures products to implement market exposure. In addition, Trident has what it calls its “Engle” model that exploits clustered market behavior in markets. There can be no assurance that the models will work exactly as designed or that market volatility will not hinder Trident Capital’s ability to implement such market exposures.
