Generating More Efficient Equity Return Streams
By Challenging Conventional Thinking.
We manage directional long short strategies that seek to produce exceptional returns in bull and bear markets by optimally allocating capital in different volatility regimes, markets and regions.
We Don't Trade Stocks. Our Strategies Apply Mathematical Processes to Index Linked Securities.
Over the past few decades, liquidity has migrated from stocks to index linked products like ETFs and index futures. Today, it's estimated that market data from index products is approaching a petabyte. We use this data to develop systematic equity strategies. Our strategies add value taking long and short positions in the most liquid U.S. listed ETFs and futures contracts.
Investment Approach
01. Focused On Markets
Most equity managers focus their research on stock level returns. Market returns are 2nd order or even 3rd order priorities. We have a wider aperture and focus our research on market level returns.
02. Dynamic and Adaptive
Equity markets are cyclical and have observable volatility regimes in bull and bear markets. We find that different volatility regimes produce unique return opportunities in different markets. RegimePilot strategies seek to apply optimal return generating processes in each one. Our strategies are driven by algorithms that dynamically adapt to market conditions and adjust exposure, or beta, long and short, to capture return opportunities over different horizons.
03. Driven By Original Research
Each index that we trade utilizes a fluid proprietary system of models and algorithms that determine positioning. We develop our own models and analytics to research and test trading signals for our strategies. This work is ongoing.
In addition, we spend a significant amount of effort developing algorithms that make the most efficient use of our signals, limit transaction costs and improve tax efficiency. All processes are important to produce an edge for our investors.
04. Automated
We seek to eliminate human error in our daily processes. Our processes are automated with computer code as much as possible.
Global Directional Long Short Strategy
01.
Investment Objectives
The strategy has 3 objectives:
-
Deliver positive calendar year absolute returns.
-
Outperform the combined liquid developed and emerging market universe over a market cycle with lower drawdown in bear markets.
-
Provide a return stream with the potential to increase investor's total fund risk adjusted return.
02.
Target Target Target Market
Index Exposure Allocations Exposure
S&P 500 Index
NASDAQ 100 Index
Russell 2000
MSCI EAFE
MSCI Emerging Markets
​
35%
20%
10%
25%
10%
133%, -33%, 0%
""
""
""
""
03.
Trading
Vehicles
ETFs and Index Futures
""
""
""
""
The strategy is globally diversified. It targets the 5 indices (or may trade equivalent or substantially similar indices) highlighted in section 02. The strategy uses a system of models and algorithms that seek to optimally allocate capital, long and short, to individual index linked securities across different market volatility regimes. The strategy level exposure target for each index is fixed and will rarely change. The dollar long short market exposure for any index is 133% of target capital, -33% or 0%. The strategy has maximum and minimum exposure boundaries of 133% of capital and -33% of capital. Model portfolio performance and risk data is available upon request.
How to Buy:
1. ETF available from Rareview Capital
2. We offer institutional separately managed accounts
U.S. Directional Long Short Strategy
01.
Investment Objectives
The strategy has 3 objectives:
-
Deliver positive calendar year absolute returns.
-
Outperform the S&P 500 Index over a market cycle with lower drawdown in bear markets.
-
Provide a return stream with the potential to increase investor's total fund risk adjusted return. We define risk as capital loss.
02.
Target Target Target Market
Index Exposure Allocations Exposure
S&P 500 Index NASDAQ 100 Index
Russell 2000 Index
​
60%
30%
10%
​
133%, -33%, 0%
03.
Trading
Vehicles
ETFs and Index Futures
""
""
The U.S. strategy targets the 3 U.S. indices (or may trade equivalent or substantially similar indices) highlighted in section 02. The strategy uses a system of models and algorithms that seek to optimally allocate capital, long and short, to individual index linked securities across different market volatility regimes. The strategy level exposure target for each index is fixed and will rarely change. The dollar market exposure for any index is 133% of target capital, -33% or 0%. The strategy has maximum and minimum exposure boundaries of 133% of capital and -33% of capital. Model portfolio performance and risk data is available upon request.
How to Buy:
We offer institutional separately managed accounts
About RegimePilot
Overview
Our Story
RegimePilot is an quantitative asset management company that focuses exclusively on sources of market risk and return. Our work uses scientific principals and consists of developing algorithms to identify patterns in data to predict market movements.
Our Vision
Our north star is earning and maintaining our client's trust. We seek to accomplish this by providing exceptional portfolio returns over multiple market cycles.
Founder & CIO
Rod Jones founded RegimePilot in 2020. He is principally responsible for the models, analytics and coding that drive the returns for the firm's strategies. Before that, he served as the Head of North America for the Index Strategies division at Deutsche Börse Group. Prior to this role, he led the Hedge Fund Client Coverage Group at Barra Inc., the equity portfolio analytics organization at MSCI, where he collaborated with some of the world's top funds.