US Equity Index Income & Protection Fund – GAI

Company: Global Alternative Investments

Asset Type: Finance

Total Return: 23%

The US Equity Index Income & Protection Fund offered by Global Alternative Investments has a rules-based strategy seeking to opportunistically benefit from perceived mispricing in the equity index options market. Specifically, by exploiting the relationship between shorter-dated and longer-dated contracts, the Fund/Strategy aims to provide ongoing income, as well as leveraged insurance against a potential equity bear market.

Coin Abbreviation: USE

Token Type: ERC20

Participation: USD, CAD, BTC, ETH, GBP, EUR

Cannot Participate: ADA

KYC: Yes

Overview

Minimum Expected Returns of 23% per annum (gross basis).

Fund Strategy

Each Friday, generate income by selling short-term put spread on US Equity Indexes (e.g., S&P 500) and utilize proceeds to purchase intermediate-term puts to benefit from sharp market declines
Results show that the strategy should yield positive returns during quarters when US Equity Indexes rise, while potentially producing triple-digit gains during periods with sharp declines – all while initially investing only 20% of invested capital
The three tested periods that follow reflect all types of markets anticipated over the longer term. Quarterly profits range from 5.3% – 94.5% of invested capital, or 25% – 470% of deployed capital, respectively (fund only invests 20%1 of its market value)
Active management of the Strategy’s formula is determined by preset rules (i.e. – triggers)

Fund Investment Thesis

The Manager believes that global equities are at major highs, viewing 2000 as having marked the summit of equities’ “real” inflation-adjusted peaks, in financial and economic terms. Consistent with peaking equity markets, volatility premiums were at historic lows at the beginning of 2018
The manipulation of global asset markets via currency printing and interest rate suppression has created unsustainable, artificially inflated equity valuations
Minimum expected returns: 23% per annum (gross basis)

Essentials

Strategy Overview – Key Factors (when managing the fund on an ongoing basis, the following factors are taken into account)

Fundamental
- Artificial and untenable currency printing
- Artificial and untenable interest rates
- Market manipulation (i.e., suppressed, inflated)
Valuation
- Historically unfavorable price-to-market value
- Unfavorable price earning ratio versus historical data and/or growth projections
- Historically unfavorable price to cash flow
Technical
- Resistance levels as it relates to discounted fundamentals
- Trend reversal, moving averages, wave theory, and volumes confirming quantitative conclusions
- Relative performance to international markets or sectors

Strategy Overview – Key Inputs

In a mature equity bull market, sell a vertical put spread to generate premium income on a short-term basis in order to fund long-term insurance in anticipation of a market correction and eventual bear market

S&P 500 / Dow Jones indexes
- Price levels
- 1-week price movements
- 3-month time horizon
VIX
- Level verified per rules-based Strategy to determine the timing of option combination’s reestablishment
Options
- Short 1-week ATM (at-the-money) put options on S&P or Dow
- Long 90-day put options on S&P or Dow
- Buy/sell ratios between the above two will be set at three-for-one long 3x as many 90-day puts for each short 1-week put
- Add long 1-week 50 or 500 points OTM (out of the money) put options on S&P or Dow, respectively (hedging against weekly declines)

The success of the formula is tied to the rules upon which the strategy’s active management is based; taken together, the three tested periods aim to reflect all types of markets anticipated through a secular bear market.

Founder and Chief Investment Officer – Sid Klein

Mr. Klein has 39 years of experience, including extensive expertise in precious metals, equity, and currency markets, as well as advanced knowledge of option pricing theory.

Competitive Advantage
- Aptitude for collecting and evaluating macroeconomic and financial data pertaining to US, Asian, and European equity markets, currencies, and precious metals
- Ability to generate efficient investment strategies that seek to benefit from premium mispricing, including analysis of volatility premium inefficiencies to hone favored opportunities
- Capacity to employ heightened leverage and tailor the investment strategy to smooth and limit investor portfolio volatility
Field of Expertise
- Superior track record of issuing price forecasts and market calls across multiple asset classes and markets
- Mr. Klein’s macro skills are comprehensive and used in conjunction with demanding criteria in volatility premium analysis and portfolio construction of actively managed, efficient option spread and combination strategies
- Applies fundamental, valuation, quantitative, and highly sophisticated technical analyses to equity markets in the US, Asia, and Europe, including the precious metals and the major currencies
- Seasoned experience to deal with market scenarios that have no historical precedents from which to draw
Extensive Experience
- Investment advisor 1982-2000; US equities, Asia, and precious metals focus since 1988
- Specialized, in-depth derivative skills
- On-ground Japanese, Asian research
- Written commentary since 1988

Mr. Sid Klein has forecasted several major market turning points within a 48-hour window

Key Market Forecasts
- Dow 2000 peak
- Dow 2002 low
- August 2003 Nikkei bottom
- January 2008 Dow peak confirmation
- December 2008 Precious Metals bottom
- Dow 2009 low
KeyPress Recognition
- Barron’s
- Globe and Mail
- CNBC
- Financial Times
- Individual Investor
- Nikkei Net

Disclaimer

This is a test the waters page. Please register your interest via the button included on this page to receive additional information.