Investment strategy
INVESTMENT
STRATEGY
- Stock selection and management based on statistically winning patterns:
- Event-driven strategies seeking competitive advantage from market imperfections in response to certain events.
- Focus on U.S. small-caps
- Holding period of 1-2 days, looking for the sweet point of each stock
- To increase the success rate, entry occurs once the trigger has occurred and the first part of the pattern has been fulfilled.
- Daily, in times of limited volatility (~230 days/year), 0-5 stocks traded; during ~20 days/year, 20-40 stocks.
- Part of the alpha comes from trading extended hours (pre- and post-market), where market asymmetries and imperfections are higher
- Traded events: capital increases (both registered and direct), M&A, analyst estimates, short reports, fund investments, quarterly and annual results.
- Example: registered direct offerings reported months ago, entering at the optimal time.
- Daily adjustment of net exposure in anticipation of market trend:
- ~230 days per year, net exposure of 80-120%.
- 20 days a year, at volatility peaks, net exposure of up to 300%; §~20 days a year, at volatility peaks, net exposure of up to 300%.
- If any, overexposures above 100%, protected with stop-losses
- Assets: equities (core), ETFs (Russell 2000, Nasdaq, SP500) and options (mainly put and call sales).
- Benchmark: primarily Russell 2000; secondarily SP500 and Nasdaq
Why Relay Race
Investments ETP?
01
- Access a sophisticated proprietary strategy through a simple product. Traded like any other stock.
02
- Demonstrated results in the past: 76% yearly return of General Manager Personal Trading (Dec 20 – Dec 23)
03
- Skin-in-the-game: GM contributing with more than 2% of the targeted €20 M to start in July 2024
04
- Physically-backed. Capital provided to manage it since start. Closure after that to new entries unless another investor sells in the secondary market.
