Investment Approach

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OurProcess

Coming up with a successful strategy is the first and foremost step for any investment firm. At Avant X Capital, we have one of the best long/short equity investment strategies specializing in major broad index option derivatives (i.e., S&P 500, Russell 2000, Dow Jones, etc.). This investing approach has proved to be successful and effective allowing for low risk with superior returns in any market condition.

So how did we come up with such an effective strategy?

Our process started with backtesting 18 million different strategies. Although no one strategy was found to be perfect, we do believe we have found the sweet spot for an optimal strategy that’s in line with our fund’s risk profile. It required years of rigorous quantitative analysis to disseminate what works and what doesn’t. The results allowed us to build an algorithmic investment model that demands a purely systematic approach for generating superior alpha.

Our strategy is client-centric and focuses on obtaining results. While the bulk of our core strategies remains unchanged, certain changes are made for each client’s unique objectives, risk appetite and mission. We work closely with our clients to come up with a plan that meets the framework, risk parameters and financial goals to be achieved.

After the investment policy has been devised, the strategic mind at Avant X Capital works on the portfolio of the client while staying within the regulations of the policy. Allocation of assets are managed in accordance with our algorithmic strategy. However, our strategy is conducted in a way that does not require us to constantly monitor the market and wait for just the right moment to inject capital, which is what sets up apart. We depend on consistent positive weekly cashflow, and not on timing or speculating the value of the markets.

Risk Management

Risk management is paramount to the process that provides the framework for the actions that need to be taken. Our historical backtest was not only to find out how we can generate the best returns. But more importantly, we tested millions of risk management strategies to find out what were the best ways to manage risk. Our quantative analysis allowed us to integrate both, the best returns vs the best risk management strategies. It is only when we integrate both are we able to produce the returns that exceeds most of our competitors.

Cashflow and Compounding

At Avant X Capital, we believe that cashflow is king. In simple terms, combining consistent positive cashflow with compounding creates wealth. Our unique strategy does not require us to make wild speculations or place bets on the direction of a company, a sector, or the market. Instead of making predictions, we understand the probability and statistics behind the market and use mechanical trading strategies which negate the need to time the market. This approach makes our strategy much less risky compared to our competitors.

OurGoals

With the help of our talented and accomplished managing partners, Avant X Capital aims to be the best hedge fund, providing higher benchmark returns than what other investment firms offer. Our unique investment approach on focusing solely on positive cashflow allow us to create a safe haven for strategic wealth creators to flourish.