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Carthage Fund II - Short Options Strategy

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.
At Carthage, our approach diverges from attempting to predict market direction or whether a stock will go up or down. Instead, we focus on evaluating the likelihood of specific stock price movements within defined timeframes. Leveraging this analysis, we strategically engage in the sale of both weekly and monthly option premiums to secure profitable outcomes.

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Investment Universe

Nasdaq 100

Strategy Type

Selling option premiums

Managed by

Carthage Capital Management LLC

Strategy Highlights

Low Minimum Investment $20,000

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.

Low Minimum Investment $20,000

Minimized drawdown

Active risk management systems with market price simulations and auto-stop loss safety orders.

Low Minimum Investment $20,000

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.

Download Our Latest Performance Report

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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

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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.

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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."

CFO, Michigan

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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....

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