GLOBAL ALTERNATIVE INVESTMENTS

Global financial markets are expected to suffer the effects of increasing volatility and inflation over the coming years. As timely portfolio re-balancing must be efficiently achieved in a timely manner, both strategies offered by GAI aim to provide yield and a response to investor portfolio volatility.

• The Precious Metals High Yield Bull Strategy aims to offer a high-yield, portfolio volatility-reducing strategy, by opportunistically benefiting from the sales of 1 – 3 month PM ETF and PM equity index options. The Strategy’s holdings benefit from the opportunistic sales of call option time premium advances. The latter are expected to grow from today’s lower levels, since increased volatility has historically been associated with PM advances. The growth in premiums suggests higher yields, while the bull move to which it is associated represents a positive “double whammy.” 

Option prices and implied volatility should advance geometrically to mirror the PM’s own anticipated acceleration higher, thereby causing higher yields, as well as capital gains; when common stocks advance, their yields decline unless dividends increase; this represents a distinct advantage for the strategy versus other financial instruments, particularly against today’s inferior yield levels and debt quality, and certainly within the context of the inherent risks implied in today’s overvalued equity prices.

• Employing Dow or S&P index options to provide income as well as a hedge for investor portfolios, The Equity Index Income & Protection Strategy represents a strategic and timely opportunity. Made to meet the challenges posed by today’s markets, this rules-based strategy seeks to provide superior profits, regardless the direction of the stock market.

The U.S. Equity Index Income & Protection Strategy’s investment program is engineered to produce gains after positive quarters, though its principal design aims to generate 65 – 95% profits following sharp bear market-style declines, while deploying only 20% of the Strategy’s assets at a trade’s inception. This is evidenced by the backtests which, when viewed together, aim to benefit from any type of market that is foreseeable over any reasonable period of time. The rules-based program, therefore, is engineered to be an all-season strategy.

Employing Dow or S&P index options to provide income as well as a hedge for investor portfolios, The Equity Index Income & Protection Strategy represents a strategic and timely opportunity. Made to meet the challenges posed by today’s markets, this rules-based strategy seeks to provide superior profits, regardless the direction of the stock market.

Perceived pricing anomalies, which have led to two differentiated strategies, aim to protect investor portfolios via defined risk and asymmetrically performing strategies, thereby requiring little portfolio asset reallocation to achieve re-balancing at a time when client wealth is, effectively, exposed to potentially extreme market risks.

Given the nature of the products, coupled with market expectations, GAI provides investors with timely, strategic profit opportunities that, given the aforementioned volatility, should result in superior gains.