Strategy Highlights
Deep expertise
In addition to deep financial and statistical research on our stocks, we incorporate weekly credit card spend data, app downloads, website traffic data, listen on every investor call/meeting, and talk with the company CFOs periodically.
Minimized drawdown
Active risk management systems with market price simulations and auto-stop loss safety orders.
Minimized exposure
Selling weekly options so that in any large market drawdown, we can easily get out.
This Is Why Carthage Fund II Is the Right Strategy for You
Many investment strategies rely on a directional view of the market. However, it is highly improbable a fund can accurately predict the right direction, the right stock selection, and the right timing over a multi-year basis. This largely explains why investment funds often don’t outperform S&P500 in the long run.
Carthage Capital Management offers a unique investment strategy that is uncorrelated with the market. We do not aim to predict whether the market will move up or down. Instead, we assess the probability of a specific stock price movement in a given timeframe. We utilize our strong fundamental research and deep understanding of options pricing to sell weekly and monthly option premiums for profit that expire worthless 95%+ of the time. This allows us to keep a non-directional bias.
Our target returns in a normalized market is +50% annually, as we target to make an average of +0.5 to 1% return per week. In a bull market, this strategy has historically outperformed SPY by 3-6x (+194.2% in 2020, +149.7% in 2021, and +41% in 2023) as we focus on recycling our capital faster and tilting our portfolio towards higher ROI trades. In severe downturns, the strategy tends to be conservative (+30.4% in 2022) as we focus on capital preservation.
Hedge Fund Manager
Carthage Fund II is Managed by Carthage Capital Management
Stephen Wu, portfolio manager, was an AI Software Engineer at Amazon and Microsoft for 6+ years, where he used statistical modeling to build the Amazon Alexa music recommendation system. Over the past 4+ years, he used statistical modeling and analysis to trade options, which eventually became the basis of this trading strategy.
He partnered with several of his closest friends at Citadel, Point 72, Millennium, Neuberger Berman, Balyasny, etc to combine statistical modeling with financial analysis to create this trading strategy. After running it for 4 years and returning +31% in 2022, one of the worst years for tech with the Nasdaq -33%, he decided it was time to launch the fund. Stephen now runs it full-time with 100% of his liquid net worth invested and aims to grow it to the best hedge fund in the world. He named it “Carthage” after one of the greatest cities in history, known as a center for trade.
Stephen double majored in Computer Science and Philosophy at Carnegie Mellon University with honors.
As Warren Buffet said, "Rule No 1: never lose money. Rule No 2: never forget rule No 1." This is a philosophy we strongly embrace.
Stephen Wu
Hedge Fund Manager @ CARTHAGE FUND II, LLC
Sophisticated Alternative Investments Aren’t Just for Institutions Anymore
Get Started
3 Easy Steps to Invest in Our Carthage Fund II Strategy
Investing in our Teton hedge fund strategy is pretty simple: just create an account, add the strategy to your portfolio and on the next funding cycle you're in.
Set Up Your Account
Quickly and securely create your account, verify your investor status and become a member of our community.
Analyze Investments
Search for offerings that fit your risk and return criteria, create model portfolios, and use the CARL tools to help you identify the best investments for you.
Fund Your Investment
Simply choose an account type, fund your investment, and follow your investment portfolio on CARL.
What Investors Say About CARL
"I didn’t know investments like this existed before finding CARL, and I guess they didn’t for regular investors until now. It provides so many more options, I can now manage my own hedge fund portfolio, diversify my investments and I have the potential to earn a return regardless of market direction."
Chris
CFO, Michigan
Our Strategies
Besides Carthage Fund II We Also Offer Other Types of Strategies
Combining flexibility and versatility, quant hedge funds are the perfect opportunity to cover all your bases. By exposing your portfolio to non-traditional asset classes besides traditional revenue areas like the stock market or real estate, you can gain lucrative benefits, especially in volatile markets. Whether you have years of experience as an investor or you're looking for new investment opportunities – CARL is your ticket to investment success.
Fitz Roy
Fitz Roy's primary objective is to generate superior returns while minimizing risk. The Fund seeks to achieve its objective by taking advantage of a proprietary investment product designed to identify short-term investment opportunities in portfolio holdings.
El Capitan
El Capitan's fundamental philosophy is based on the selection of global markets with the greatest inflow of capital at the present time. The strategy uses quantitative decision making techniques that measure the strength of the market based on the flow of capital.
MB Commodities Capital
MBCC uses forward looking cross asset arbitrage models to pick up on future demand trends that are yet to be priced into the Equity and Commodity market based on any economic cycle.
Teton
Cayler Capital LLC (CCL) is a systematic energy program that seeks to deliver growth, diversification, and preserve capital in the oil market via systematic discipline with fundamental analysis. CCL is focused on trading futures and options in the WTI, Brent, Gasoline, and Heating Oil markets.
0-Sum G
Our innovative options trading approach integrates both long-term and short-term positions to leverage market dynamics while effectively mitigating risk. This proprietary trading strategy is meticulously designed to provide strategic risk management and adaptability, aiming to optimize returns regardless of market conditions.
Dynamic Factor Portfolio
Fuji employs the Dynamic Factor Portfolio Strategy (DFP) developed by our Co-Founder, Masao Matsuda, PhD and FRM as a result of his years of research as a Financial Risk Manager (FRM) at Nikko Securities and beyond....
Carthage Fund II
Carthage's primary objective is to achieve a weekly profit margin of +0.5-1% through the sale of options, collecting premiums, which is expected to compound to an annualized return in the range of +30-60%. Notably, our strategy yielded impressive returns of +194% in 2020, +149% in 2021, +30% in 2022, and +41% in 2023....
Denali
Denali's investments in US stocks allow this strategy to preserve capital in down periods and react quickly during strong uptrends. This defensive approach blends low-risk affinity with long-term return goals to create revenue streams.
K2
K2 blends behavioral finance and traditional valuation techniques to select stocks from the S&P 500. The fund strategy is quick to react to stock market ups and downs and aims at consistently generating profits.
Kilimanjaro
Energy, metals, agriculture - Kilimanjaro invests funds in futures spanning the entire commodities spectrum. Its market-neutral approach makes this strategy a perfect pairing with other uncorrelated or other more straight-forward strategies.
Olympus
Olympus uses three fully automated and complementary systems to generate returns. Unlike many hedge funds, this strategy takes full advantage of quant methods to generate revenue for its investors.
Victory Peak
Multiple systems compete for capital, emphasizing compound annual return while aiming to minimize drawdown. This strategy seeks to determine the current behavioral regime and apply capital only when the corresponding probabilities show a positive mathematical expectation.
Matterhorn
Matterhorn uses statistics to take advantage of the price actions of different securities. The strategy invests in financial instruments representing: US equities, US bonds and commodities.
Everest
A diversified, systematic multi-strategy vehicle, which aims to generate long-term absolute returns by creating layers of statistical agents across asset classes through different signals, universes and frequencies.
Still Need Help?
If you have any further questions about hedge fund investing opportunities, our Teton strategy or about CARL in general, please do not hesitate to contact us.