Diversified Alpha
Executive Summary
Diversified Alpha uses a multi-strategy, non-trend systematic approach to trade liquid futures markets. It aims to deliver uncorrelated, absolute returns through all market environments, applying scientific methods to identify a range of alpha, diversified by asset classes and time-frames. It has demonstrated a low correlation with traditional markets and differentiates from traditional CTAs.
Diversified Alpha runs over 30 uncorrelated strategies with a commodity focus. These strategies operate independently of one another and are each designed to capture a specific opportunity. Each has its risk system with controls and constraints that are relevant to the markets being traded and often include forward-looking scenarios. In general, they complement one another and have time horizons ranging from short- (5-10 days) to medium-term (2-8 weeks).
Risk management and portfolio construction combine longer-term strategic targets for the portfolio volatility, asset class allocations, and strategy weights with a daily optimization process designed to enable strategies to deliver their target volatility within their risk constraints. This process aims to ensure a high level of diversification by trading approach, time frame, and markets.
Research is viewed as a continuous process focused on enhancing and improving Diversified Alpha, either through discovering new sources of alpha, creating differentiated trading strategies, or updating existing processes.
Diversified Alpha began live trading in February 2016 and targets an annualized volatility between 11% to 15%.
It is available through a range of different vehicles including an onshore European fund, separately managed accounts and most recently a US onshore and an offshore fund.
DCM Diversified Alpha is available in different investment vehicles including:
- Luxembourg SICAV-SIF with weekly liquidity
- Separately managed accounts
- Galaxy Plus with US onshore & offshore structures with weekly liquidity
Please note that some of the vehicles may not be authorised or may be restricted in certain jurisdictions and it is the responsibility of every potential investor to satisfy itself as to the full observance of the laws and regulations of the relevant jurisdiction.
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Disclaimer Info
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
The programs listed here are a sub-set of the full list of programs able to be accessed by subscribing to the database and reflect programs we currently work with and/or are more familiar with.
Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history. Individuals cannot invest in the index itself, and actual rates of return may be significantly different and more volatile than those of the index.
Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.
Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.
Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.
RCM may receive a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.
Limitations on RCM Quintile + Star Rankings
The Quintile Rankings and RCM Star Rankings shown here are provided for informational purposes only. RCM does not guarantee the accuracy, timeliness or completeness of this information. The ranking methodology is proprietary and the results have not been audited or verified by an independent third party. Some CTAs may employ trading programs or strategies that are riskier than others. CTAs may manage customer accounts differently than their model results shown or make different trades in actual customer accounts versus their own accounts. Different CTAs are subject to different market conditions and risks that can significantly impact actual results. RCM and its affiliates receive compensation from some of the rated CTAs. Investors should perform their own due diligence before investing with any CTA. This ranking information should not be the sole basis for any investment decision.
See the full terms of use and risk disclaimer here.