OUR SOLUTIONS
Managed Options
MANAGED OPTIONS
Regula Aurea believes in the efficacy and power of uncorrelated alternative investments. Our active trading employs a set of options trading strategies designed to broaden the portfolio and enhance returns. They have the aim to deliver alpha with low correlation and moderate volatility.
Each of the strategies aims to achieve a solid return-to-risk ratio, while maintaining a controlled overall level of risk. These strategies are expected to trade actively and may include statistically-based and tactical trading strategies, premia capture strategies, volatility trading strategies and blended trading strategies. Seeking to achieve our investor’s investment objectives, we use maximum flexibility and dynamically manage these strategies. We invest its assets in a wide variety of market instruments and asset classes.
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These strategies focus on multi-asset class exchange-traded options to provide investors with alternative investment opportunities which seek to generate returns regardless of market conditions. They take advantage of short-term shifts in the market with a focus on income generation and capital growth. They are also designed to act as a separate asset class and return stream in portfolios giving uncorrelated returns and hedging to traditional asset classes (Stocks, Bonds, Real Estate).
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Many investors use these strategies as a derivative overlay to their core buy and hold portfolio which assists in diversification and helps to smooth returns. This also points to diversification by factors and strategy rather than only diversifying across asset classes.
Regula Aurea manages and executes managed options trading strategies for high-net-worth individuals, institutions, and family offices.
SEEKS ATTRACTIVE RISK-ADJUSTED RETURNS
These strategies utilize long and short positions, while striving to remain insulated from the large swings of equity markets. It seeks to deliver positive returns at a lower volatility, resulting in compelling risk-adjusted returns for investors.
OPPORTUNITY TO PERFORM IN RISING AND FALLING MARKETS
These strategies seek capital appreciation regardless of overall market direction. They provides investors an opportunity for positive returns at a time when traditional assets, such as stocks and bonds, may be struggling.
GREATER PORTFOLIO DIVERSIFICATION
We believe that different investment strategies can provide what many investors seek: a source of returns that is largely independent of traditional risk factors, and still diversifying to classic alternative strategies. With the advent of market-neutral style and premia capture strategies, investors may have another tool for reaching their return objectives.
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This is because correlations across risk premia and asset groups tend to be low, resulting in strong diversification benefits when combined in a single portfolio.
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DIVERSIFYING TO TRADITIONAL ASSETS
While equities and bonds are often viewed as reliable sources of long-term returns, many investors are perhaps overly-dependent on them. As such, we believe that investors can benefit by diversifying to other sources of return- such as a market-neutral alternative assets and trading strategies.
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These strategies seek to deliver returns that are differentiated from those of core equity and fixed income, with the added benefits of potentially higher liquidity, transparency and lower cost. This diversification may allow for gains in some strategies that can potentially offset losses accrued in other strategies.
RIGOROUS RISK MANAGEMENT
The risk of our strategies is monitored on a daily basis by the assigned portfolio manager with emphasis on metrics such as volatility, gross exposure, position concentration and severe loss scenarios.
In-depth quarterly reports which include information on drivers of performance and detailed exposure data are available each quarter through the broker-dealer.
To find out how we work with clients and our investment philosophy read our Frequently Asked Questions.
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To find out how we might be able to work together contact us for a meeting.