The Elcano Value Focus Fund offers a long-only U.S. value strategy which may expand into global equities. The investment objective is to outperform the broad value segment of the U.S. equity value universe as measured by the Russell 3000® Value Total Return Index (the “Index”) over the long-term. The Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad value market.
The technology uses sophisticated feature analysis to predict outperformers within the value universe while maintaining sector and size diversity. These features are comprised of fundamental financial statement data, momentum and technical indicators, proprietary price-based signals, and other alternative data inputs.
The expected portfolio volatility and numerous other risk management metrics are analyzed both through rigorous simulation and backtesting, and in real-time trading. The ELCANO Value Focus Fund trades a basket of value-oriented long securities with periodic rebalancing.
The Elcano Hedged Equity Fund combines a variety of high capacity long/short equity strategies using diverse Machine Learning models. The fund aims to preserve investor capital while seeking to generate positive absolute returns irrespective of macro environments.
The fund is nimble regarding net and gross exposure and targets volatility that is about a third of the broader US equity market indices. FAE utilizes personnel and computing resources to closely monitor market and sector exposures.
The Elcano Market Neutral Fund seeks to offer qualified investors positive returns in all market environments – mitigating market risk and generating returns in upward trending and downward trending market environments. The fund trades baskets of like-behavior securities training from a large universe of global equities. Baskets are long/short balanced and risk-optimized. The fund is rebalanced periodically and holds between 250-1,500 securities that operate in a wide-range of industries with varying market capitalizations.
The fund utilizes sophisticated risk management tools incorporating a variety of machine learning methodologies, peer grouping, volatility analysis and other thorough backtesting and portfolio monitoring. The Fund’s goal is to achieve higher returns than diversified products with comparable net exposures to the Elcano Market Neutral Fund strategies
Focus AE Trading Platform was developed with support from software development tax credits provided by the Louisiana Economic Development’s office of Entertainment Industry Development.
