Interview with Capricorn Strategies, CTA Trading Strategies

Capricorn Strategies

“By following a disciplined approach to trading that adheres to a strict risk management process, over time investors will benefit from enhanced portfolio returns.”

by Capricorn Strategies

Hedgethink presents the interview with the CTA trading strategies – Capricorn Strategies. Supervised by the Danish financial authorities, Capricorn Strategies provides advisory services to investors who are looking for products delivering superior CTA trading strategy, that seeks to outperform market indexes with uncorrelated, risk-adjusted returns.

Company’s discretionary approach has taught that portfolio diversification is achievable trading the G10 currencies. Its expertise in analysing real-time data is developed over years of experience and gives a key advantage over a broad analysis of the markets.

Capricorn Strategies discretionary approach

Source: Capricorn Strategies


HedgeThink: Can you tell us about Capricorn Strategies?

Capricorn Strategies: Capricorn Strategies is an established CTA with a global client base that includes; Asset Allocators, Institutions, Investment Funds, Banks, Brokers and High Net Worth Individuals.  Since 1999 Capricorn has produced superior risk adjusted returns managing several ‘pure alpha’ strategies, trading high liquid currencies and financial instrument as managed accounts.  To achieve our investment goals we aim to provide premium investment programs that seek strong returns which exhibit low volatility and correlation to other investment vehicles.

HedgeThink: Can you tell us about your team?

Capricorn Strategies: The goal of our investment team is to provide premium strategy and advisory services, which offer a unique perspective with fewer restrictions in adapting to changing markets. All investment strategies are created by Mikkel Thorup the CIO and Founding Partner of Capricorn. Risk control policies and company operation have been governed by Mike Rasmussen a Partner in Capricorn since 2004. In order to further strengthen our ability to add value to our clients’ portfolio, we choose to develop and maintain relationships with reputable financial institutions that are leaders in their field.

HedgeThink: How do you differentiate you active Investment Strategies and portfolio management from other providers?

Capricorn Strategies: Our investment services are unique to other CTA portfolio management firms in that our strategies are all developed from Capricorn’s investment philosophy.  At Capricorn, we believe that risk-adjusted returns can be consistently achieved in today’s financial market by having technical rules for trading, combined with a strong discipline. It is by understanding how specific factors influence the markets, which we conclude is a great source for creating pure alpha. The discretionary edge is earned over many years of experience.

HedgeThink: How do you differentiate yourselves in the CTA market space?

Capricorn Strategies: To ensure that we stand out in the CTA market space we understand the importance of differentiating the Capricorn services from other global CTAs. The primary factor in achieving this is by developing and maintaining investment strategies that produce risk-adjusted returns over the medium to long term horizon. However, performance is not the only selling point to our services as many CTAs follow a similar investment approach and therefore the industry returns can be correlated to one another. This is why we focus to differentiate the Capricorn CTA strategies on how the returns are generated. Through a smaller operation Capricorn is more dynamic and responsive to changing markets, and with fewer liquidity constraints against our programs. This allows Capricorn to more easily evolve our strategies with the goal of improving returns, decreasing risk through diversification, or both.

HedgeThink: What can you tell us about your premium CTA Trading Strategy?

Capricorn Strategies:  All our CTA Trading strategies are governed by the same trading methodology developed by Mikkel over 15 years ago. Our processes we maintain that a successful CTA must investigate trading opportunities using technical analysis, whilst incorporating discipline into the procedure.  Following this methodology for trading currencies has been fundamental in Capricorn persistently creating pure alpha in its currency programs. Our specialist strategies offer greater diversification thereby providing a source of positive returns that are uncorrelated against traditional assets. Through our discretionary judgement we are able to generate a key advantage over broad analysis, as the fundamental principle behind the Capricorn investment philosophy is the skill of the manager creating excess returns. By incorporating robust risk controls to manage the programs, we are able to protect our CTA trading programs against adverse market conditions and reduce overall portfolio risk.

HedgeThink: What are your CTA Advisory Services?

The Capricorn CTA advisory services are provided to investors, professional traders and market participants in order to benefit from our years of experience as a CTA. These services range from bringing a product to the market, analyzing the strengths and weaknesses of different trading strategies, to generating trading signals and currency hedging solutions. Investors wanting to verify a trading program or develop a manager selection process will benefit from our experience and understanding of investment strategies and how they perform in differing market environments. In addition, investment vehicles can be structured to the specified requirements to suit the investors’ goals and requirements.