INVESTMENT

STRATEGY

“Our main goal is to add value and preserve capital in a manner that is uncorrelated to traditional long-only investments, as well as other hedge funds.”

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OUR INVESTMENT STRATEGY

Trident Capital Management is a systematic global macro alternative investment manager that seeks to preserve capital and to add value through proprietary measurement of the overall markets’ appetite for risk and positions the portfolio accordingly.

TRADING SIGNALS

TRADING SIGNALS, identifies and determines the markets clustered investor behavior and market appetite for risk: Trident Capital’s trading signals are binary. They determine clustered investor behavior and the overall markets’ appetite for risk. If risk is “on” signals will result in equity and commodity exposures. When risk is “off”: signals will result in short dated Treasury and long dollar exposures. Trident measures clustered investor behavior over proprietary time frames with each time frame receiving the same risk budget. Every market has the same parameters, which avoids overfitting. In addition, Trident determines financial liquidity in the global economy. When the global marketplace is awash in cash and therefore liquidity, Trident will seek to buy “risk assets” such as stock indices, commodities and long dated sovereign bonds. When the system is starved for liquidity, Trident will seek to sell stock indices, sell commodities and buy short-dated sovereign bonds.

RISK MANAGEMENT

RISK MANAGEMENT, employing three-pronged risk management techniques: Trident employs a three-pronged risk management methodology. Every position has a hard stop:; every position is sized according to: market volatility and risk, and Trident seeks to maintain what it deems to be optimal portfolio diversification. Trident intends to apply disciplined risk management. First, every signal has a coincident market “stop”, which determines the planned maximum loss per trade. When a trade hits its “stop,” Trident will commence exiting the position. Of course, there is no guarantee that we will always be able to complete the exit at the stop price or that losses will not exceed the planned maximum loss. Also, Trident has risk management per market which is determined using our proprietary models. Finally, risk is further reduced by proprietary risk models which produce a diversified portfolio aimed to reduce risk in any one asset class, and the portfolio.

PORTFOLIO CONSTRUCTION

PORTFOLIO CONSTRUCTION, using proprietary models: Trident seeks to maintain a well-diversified portfolio while choosing markets that Trident views to have the highest likelihood of achieving the highest risk-adjusted returns. Trident uses a proprietary model with dynamic correlations to determine different risk environments. In addition, Trident’s models create a proprietary weighting scheme that results in a unique blend of portfolio exposures. Once the portfolio takes shape, Trident uses proprietary portfolio risk rebalancing models to maintain the targeted volatility level.