K2 - A Long Only Stocks Strategy

K2 blends behavioral finance and traditional valuation techniques to select stocks. It has a proprietary valuation approach based on normalized free cash flow and a behavioral finance model that encompasses momentum. This strategy generates strong consistent returns by picking stocks that go up faster than the market and selling quickly those that are going down and aims for steady, incremental returns from a process that has generated positive returns in both down and up markets.

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Investment Universe

S&P 500


Strategy Type

Directional momentum-based swing trading


Managed By

Luseq2 Pty Ltd

Strategy Highlights

Low Minimum Investment $20,000

Long Positions Only

A long-only strategy, constantly looking for statistically-based gain opportunities in the market

Low Minimum Investment $20,000

Well Established

The strategy CARL K2 is based on is well-known in the hedge fund industry

Low Minimum Investment $20,000

Experienced

A highly experienced strategy manager who is well versed in running an institutional-level fund

This Is Why K2 Is the Right Strategy for You

CARL K2’s strategy blends behavioral finance and traditional valuation techniques to identify stocks to buy. This means it takes a quantitative approach towards a company’s stock value and market participants behavior as they react to new information. 

The investment process is systematic and without emotion. There is a complex hierarchy of decision rules engineered to plot a path between risk and reward with the objective to identify stocks that are expected to perform better than the market and buy them.

Risk control is part of the investment process, stocks that do not perform as expected are liquidated. The strategy has a short holding period of a few days for each stock in the portfolio.

The strategy aims to generate positive returns with a fanatical focus on risk control. The returns are a mix of the investment process and the market rewarding the approach. 

Hedge Fund Manager

K2 Is Managed by Alan Harmer

Alan Harmer has a background in economics, mathematics and finance. His groundings were in fundamental equity analysis as head of research and director of strategy for Prudential Securities, as consulting strategist at Smith New Court and doing independent expert reports for the corporate areas of a number of investment banks.

Alan’s background is in economics, mathematics and finance. His groundings were in fundamental equity analysis as head of research (Melbourne) and director of strategy (New York) for Prudential Securities, as consulting strategist at Smith New Court (London) and doing independent expert reports for the corporate areas of a number of investment banks.

He has senior managerial experience in managing international equities in a number of investment centres; Prudential (New York), Credit Agricole (Paris), Macquarie (Sydney), Maxxim (Melbourne), BSF and Al Rajhi (Riyadh) and Kappa Forte (Mauritius/Mumbai).

The track record of the teams he has been involved with has been outstanding. The alpha of the public funds he has directly managed is:

  • 11.7% pa over twenty years for Australian funds
  • 25.1% pa over sixteen years for public global funds
  • 119% pa over twenty years for bespoke private discretionary funds

“We look to generate strong ongoing performance on an incremental basis. We look at risk controls as an embedded part of that process.” 

Alan Harmer
Hedge Fund Manager @ CARL K2, LLC

Sophisticated Hedge Fund Investments Aren’t Just for Institutions Anymore

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3 Easy Steps to Invest in Our K2 Strategy

Investing in our K2 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 K2 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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Still Need Help?

If you have any further questions about hedge fund investing opportunities, our K2 strategy or about CARL in general, please do not hesitate to contact us.

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