Buy and sell transactions in Wall Street are now dominated by rapid-fire computer algorithms, creating shorter and faster boom-and-panic cycles. To take advantage of this phenomenon, Leverage Long Inverse is created to provide tight control over portfolio risk and to quickly profit from market when mis-pricing opportunities arise. Leverage Long Inverse actively trades leverage ETFs/ETNs using computer models based on extensive daily economics, fundamental and technical market data.
Following daily updated equity curve and drawdown charts are produced from Leverage Long Inverse portfolio. Portfolio return and drawdown calculations are not audited and are provided by Analytic Investment Management LLC for informational purpose only. Portfolio return and drawdown data net of custodial and trading expenses are directly obtained from one separately managed brokerage account at Interactive Brokers and reflect the deduction of quarterly 20% performance fee on capital appreciation of the net asset value.
Past performance is not indicative of any future result. Investing in this portfolio involves risk, including the risk of principal loss. Don’t invest with money you can’t afford to lose. Standard & Poor’s 500® Total Return (S&P 500®TR) is comprised of 500 stocks representing major U.S. industrial sectors. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”). Charts and S&P 500® Total Return data are provided by Sheets – Google Docs.
Leverage Long Inverse mainly trades 4 sets of leverage ETFs/ETNs: UPRO(ProShares UltraPro S&P500)/SPXU(ProShares UltraPro Short S&P500), XIV or ZIV(VelocityShares Daily Inverse VIX Short-Term or Medium-Term ETN)/VXX(iPath S&P 500 VIX Short-Term Futures ETN), TQQQ(ProShares UltraPro QQQ)/SQQQ(ProShares UltraPro Short QQQ), and TMF(Direxion Daily 20+ Yr Treasury Bull 3X)/TMV(Direxion Daily 20+ Yr Treasury Bear 3X). Based on market conditions, however, it can trade other 3X leverage ETFs/ETNs as well.
Leverage Long Inverse systematically uses following simple yet effective investment disciplines as its core algorithms: (1) when market volatility is low or when market is undervalued, oversold, or trending up, invest in leverage long ETFs/ETNs; (2) when market is overbought or overvalued, stay in cash; (3) when recession is pending, or market is volatile or trending down, invest in leverage inverse ETFs/ETNs.
TIME HORIZON AND INVESTMENT OBJECTIVE
Long term aggressive growth of capital.
Higher than US stock market.
Long and short (using inverse ETFs/ETNs to short).
Up to 3X leverage equity/fixed income/volatility ETFs/ETNs.
Hold 0 to 4 leverage ETFs/ETNs.
20% quarterly performance fee on capital appreciation of the net asset value, subject to 10-year look-back period of high water mark, with loss prorated for withdrawals.
FOR QUALIFIED CLIENTS ONLY
Qualified clients, as defined by Rule 205-3 of the Investment Advisers Act and amended pursuant to the requirements of Section 418 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), are those clients with either:
A) minimum investment amount of $1,000,000 with the Adviser; or
B) $2,100,000 in net worth, except that:
- the person’s primary residence will not be included as an asset;
- indebtedness that is secured by the person’s primary residence (e.g., a mortgage), up to the estimated fair market value of the primary residence at the time the advisory contract is entered into, will not be subtracted as a liability; and
- indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence at the time the advisory contract is entered into will be subtracted as a liability.
Pursuant to Rule 205-3, identification and proof to verify the status of qualified clients is required, including “look through” provision for certain qualified clients.
槓桿多空投資組合主要使用下列4組多空槓桿型ETF/ETN產品做交易：UPRO(ProShares UltraPro S&P500)/SPXU(ProShares UltraPro Short S&P500), XIV或ZIV(VelocityShares Daily Inverse VIX Short-Term or Medium-Term ETN)/VXX(iPath S&P 500 VIX Short-Term Futures ETN), TQQQ(ProShares UltraPro QQQ)/SQQQ(ProShares UltraPro Short QQQ), and TMF(Direxion Daily 20+ Yr Treasury Bull 3X)/TMV(Direxion Daily 20+ Yr Treasury Bear 3X)。不過根據市場狀況，有可能用其他3倍槓桿型ETF/ ETN產品做交易。
It is impossible to produce a superior performance unless you do something different from the majority.
Bull markets are born in pessimism, grow on skepticism, mature on optimism and die on euphoria.
There’s only one reason a share goes to a bargain price: Because other people are selling. There is no other reason. To get a bargain price, you’ve got to look for where the public is most frightened and pessimistic.
People are always asking me where the outlook is good, but that’s the wrong question. The right question is: Where is the outlook most miserable? The obvious application of this concept in practice is to avoid following the crowd.