Fitz Roy - A Statistical Arbitrage Strategy

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. The strategy allocates capital across multiple strategies. All strategies are directional. When combined the fund's overall portfolio is neutral to market conditions. The strategy follows a quantitative and systematic approach to investing. Analytical and computational tools have been developed to implement a superior decision-making process. Investors benefit directly from capital appreciation of their capital, true portfolio diversification, and from ongoing technology product developments.

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Investment universe

Select U.S. ETFs and ETNs


Strategy Type

Statistical Arbitrage


Managed by

Viallion Tech and Eight Two Advisors

Strategy Highlights

Low Minimum Investment $20,000

Market-Neutral

Return expectations are independent of most market conditions.

Low Minimum Investment $20,000

Proprietary Research Tools

Analytical and computational tools to implement a superior decision-making process.

Low Minimum Investment $20,000

Statistical Arbitrage

Takes advantage of changes in the volatility of portfolio assets.

This Is Why Fitz Roy Is the Right Strategy for You

Absolute Return Fund, How?

  • Systematic process to decision making.
  • Quantitative and scientific methodology.
  • Proprietary research tools.
  • Transparent performance indicators.
  • Return expectations are independent of most market conditions.

Absolute Return Fund, When?

Equity market volatility has the property of being mean reverting within a regime. Regimes represent a shift in the average value of market volatility. Regimes tend to last for extended periods of time.

The fund’s strategy realizes positive returns by taking advantage of fluctuations in the volatility of portfolio assets. Positive returns are expected as long as the volatility regime stays unchanged.

Asset prices do not follow a straight line regardless of long term price direction. Short term price changes create investment opportunities to capture superior risk-adjusted returns.

The strategy is a true reversal strategy that seeks to profit from price fluctuations. The strategy uses the volatility variance of underlying assets in order to discover future price direction.

  • The investment strategy captures alpha with the use of proprietary computer algorithms that follow a numerical process to identify and to establish long and short positions.
  • A quantitative and systematic approach process is used in order to minimize human error, emotion, and position bias.
  • The fund's analytical tools are used to optimize capital allocation, reduce risk, and diversify holdings across markets, regions, industries, and sectors. Our technology allows generates accurate results every time. Execution of investment ideas has been automated to ensure fast delivery of new alpha to the portfolio.

Potential profit is the sum of every price change where each change is taken as a positive number. Our technology is designed to identify "bottoms and tops" where potential profit can be achieved.

The signals to buy and sell are a product of our proprietary research and computational tools. A signal is a probability estimate for a reversal in the direction of prices. The analysis is centered around the volatility of equity prices. Two common properties of equity market volatility are:

  • Volatility can be observed to experience different regimes(high/low). Volatility regimes represent a shift in the average of realized volatility and are considered to last a considerable amount of time.
  • Volatility tends to be mean reverting within regimes.

The volatility regime provides us with an idea of price elasticity of the underlying security. When the volatility of the underlying security is close to the top of the range of the regime, the security is most likely close to a short term bottom and vice versa.

The fund’s signal can estimate, with a high degree of statistical significance, short term directional changes in the asset prices. The process follows a continuous model with new data replacing older data. The average position turnover is 15 days.

Advantages

  • Low to negative correlation to market benchmarks.
  • Highly liquid instruments, capacity is not restricted.
  • High risk adjusted returns over a reasonable period of time.
  • Able to deliver alpha regardless of market conditions.
  • Systematic algorithmic process with the potential for better returns than traditional market instruments.
  • True portfolio diversification.

HEDGE FUND MANAGER

Fitz Roy Is Managed by Viallion Technologies

Viallion Technologies is part of Making Sense. With over 200 engineers it develops, implements and maintains highly complex technology infrastructure and systems across many different industries and sectors. High-level technology and multi disciplinary professionals work together to solve difficult engineering problems. The engineering team at Viallion works constantly and along side Eight Two Advisors to implement and develop innovative solutions and actionable research with the objective to improve the fund's performance. The Fund's management is concentrated in building scalable and high performing systems to tackle current market problems and leverage their skills and advances in technology to deploy solutions and processes to discover and continually deliver alpha to the portfolio.

The team is composed of:

  • Cesar D'Onofrio, President
  • Gunnar Cuevas, Portfolio Manager
  • Ignacio Caldentey, Director of operations
  • Sebastian Gavilán, Technical Lead
  • Juan Pablo Estavillo, Quantitative Analyst
  • Juan Diego Raimondi, Quant developer

“In the long-run we are all geniuses.”

Ignacio Caldentey
Hedge Fund Manager @ CARL Fitz Roy, LLC

Sophisticated Hedge Fund Investments Aren’t Just for Institutions Anymore

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3 Easy Steps to Invest in Our Fitz Roy Strategy

Investing in our Fitz Roy 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 connect your CARL account to your bank and transfer investment funds.

Analyze Investments

Using the tools within the CARL app, determine which strategies at what allocations are right for your investment goals.

Fund Your Investment

Simply save your portfolio settings and on the next strategy funding cycle your investment will be live!

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 Fitz Roy 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.

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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.

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Still Need Help?

If you have any further questions about hedge fund investing opportunities, our Fitz Roy strategy or about CARL in general, please do not hesitate to contact us.

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