This 20-million-euro Exchange Traded Product (ETP) is to be launched in the London Stock Exchange in July 2024. This ETP is utilized by the General Manager to execute trades employing his proprietary event-driven strategy.
The event-driven strategy focuses on trading based on specific events such as capital raises, IPOs, mergers and acquisitions. Trades are executed exclusively when a predetermined pattern emerges, i.e., typically after the event is triggered. This approach differs from other event-driven investors who position themselves prior to the event. The typical holding period for positions is 1-2 days.
In instances where favorable trading opportunities are scarce, the ETP is allocated to three major US indices: Nasdaq, S&P 500, and Russell.
The effectiveness of the strategy is particularly pronounced during periods of heightened volatility, characterized by increased events and lucrative investment prospects. Consequently, the year 2022 marked the General Manager’s most successful year, achieving a remarkable 116% profitability even amidst declining trends in stock markets.
The overall track record since inception (December 2020 to December 2023) reflects a sixfold increase, translating to an impressive compounded annual return of 76%.