CTA
Program
Inception
NFA ID
Trade Level
Notional Funding
Margin-to-Equity
AUM
Fee Structure
RT/YR/M
Legal Structure
Sector Focus
Holding Periods
Who is the Commodity Trading Advisor?
Name of the program offered by CTA?
When did program first commence?
What is CTA's National Futures Association ID?
What is the managed account investment level?
What is the minimum investment needed?
What is the average margin daily usage?
How much assets under management?
What are the management fee/incentive fee?
How many roundturn trades each year per million?
Which type of accounts and investors are eligible?
Which sector is being traded?
How long are trades being held for?
Matic Capital Allocation LLC
Matic Program
January 2013
0441678
$250,000
20% ($50,000)
5% ($12,500)
$6.1M USD
2% annualized / 20% monthly
3000
Managed Account/QEP
Only Precious Metals
Short-term (75% Intra-day/25% Intra-week)
Low Margin-to-Equity Ratio:
Return on Margin Ratio:
Niche Trading:
Our Investment Team
and Supporting Cast:
Matic Program uses on average 5% margin-to-equity. In dollar amount, a single trade unit of the program would use about $12,500 in margin usage. Futhermore, the program holds no overnight margin 60% of the time. This allows investors to easily cross-margin in their portfolio and keeps them flexible. We understand what CTA investors want : Low margin usage with high returns on capital.
Matic Program return on margin ratio is 4.5. Rule of thumb for margin ratio is anything above 1 draws interest.
2013 return was 22.61%. This percentage is based on trade level of $250k. However, average margin usage was only a mere $12,500. In another word, return on actual funds being used was over 400%. Notional funding is at $50k per unit size, making return on notional over 100%.
Our unique trading structure consist of only trading metals, being 100% systematic, and holding trades short-term has help diversify investors portfolio. Thus assisting in lower volatility in their books. Matic Program has a 0.08 correlation with S&P 500. The program also has low correlation with major CTA benchmarks.
We have a dedicated team that works around the clock. Traders, programmers, administration, and accounting is handled continuously and are here to answer any inquiries you may have. We aim to serve our clients top notch customer service. Our custodian is RJ O'Brien, a highly reputable company. Our audit team is Hall & Company, which will answer any reconciliation questions. Our legal team is Schuyler, Roche & Crisham, one of the leading CTA/Hedge Fund legal counsels today. We take great pride in our team and supporting cast.
Outlook
In today’s market conditions we find looking far ahead is asking for unnecessary risk. World economy news, natural disasters, and anything in between are impossible to predict and not worth the risk. Matic Progam predicts short-term movement in price. It aims to forecast gold and other precious metals on a daily basis. The program uses various linear and non-linear modeling of advanced regression analysis to show correct intraday direction. This method, coupled with precious metals daily volatility, has brought successful returns since programs inception on June 2010. Quantitative modeling allows us to structure our risk management with precision and not let outside sources in metals sector affect our trading. Instead we take advantage of the incoming volatility in price levels.
Strategy
Matic Program seeks to be a unique addition to a clients portfolio. The program trades strictly gold and other metals futures contract and is 100% systematic. The program analyzes trends, breakouts, reversals/pivots, and momentum movement to determine entry and exit points. Typically, seventy five percent (75%) of the positions are initiated and exited on the same trading day. Positions held overnight are typically exited within a few trading days. Since its inception on prop account in June 2010 the program has not had a losing year. Main reason is the programs rigorous risk management to limit drawdowns and know when to exit a trade, regardless of market conditions. Precious metals market has high liquidity and volatility making trading opportunities come often.
Risk Management
Risk is managed in various ways. The Program will exit trades by applying a stop or trailing loss per trade to limit drawdowns and wait for next opportunity. The following trade will use the previous loss and market conditions as a calculation to optimize the current trade’s stop or trailing loss input. Additionally, the Program surveys risk factors such as sharpe ratios, risk-adjusted returns, volatility and correlation analysis, and tail loss statistics. These progress reports determine the direction the model takes to limit drawdowns.