Best US Enhanced Fixed Income Strategy - Alpha Return Enhanced Fixed Income Program
At Diversified Capital Management our sole focus is providing superior risk-adjusted returns to traditional benchmark investments. We place particular emphasis on risk management as it appears to be what is most unaccounted for in traditional investments. To help investors reach their goals we offer three programs:
Our Diversified Program is a multi-strategy platform comprised of five, independent, non-correlated methods. Each method was designed to run as a stand-alone product, not as a mere hedge to the other methods. All five were profitable in 2014.
Our Alpha Index program is designed to enhance the risk adjusted returns of the benchmark indices and it has done just that since inception. It’s CAROR has been just over 23% and has also shown positive deviation in months when the benchmarks have lost money. The most recent example of this was in January 2015, when the program posted a .47% return vs -3.10% for the S&P 500.
Our Alpha Return program is designed to capture the yields of benchmark treasuries while using the futures to not only hedge interest rate risk, but enhance returns, especially in a rising rate environment. Despite maintaining short note futures for the entirety of 2014, the program was still able to produce positive returns in a less than ideal environment. (Cash bond gains are not marked to market and therefore not reflected in performance)
At DCM we set ourselves apart by always having a plan for when our investments don’t go exactly to plan. In fact, by using non-linear hedging strategies, we often produce our best returns when the market works against our underlying positions the most. Proof that being prepared for whatever the market throws at us is an integral part of our culture.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS SUBSTANTIAL RISK IN FUTURES TRADING