Investment Objective, Strategies and Process
The Fund is a domestic long/short absolute return fund. Its principal objective is the produce positive, absolute risk-adjusted returns in all market conditions. The Fund seeks to invest especially in fast growing, large capitalization, domestic companies, regardless of industry, with active exchange traded equity options, which will be used to hedge risk and produce income.
All investment decisions will be made by Winfield Capital, LLC, the Fund’s Investment Manager.
The Investment Manager employs a systematic, transparent and repetitive investment process built upon a top-down strategic framework and supported by rigorous bottom-up research. Its objective is to invest in fast growing domestic businesses and hedge risk through income producing equity options.
The investment process begins with a proprietary global universe of public companies. The universe is concentrated in a few sectors where the Investment Manager possesses unequalled expertise and contacts. The Investment Manager will access exclusive sources he has built relationships with during over 45 years in the industry, including sell-side analysts and large cap growth managers.
Subsequent to the strategic, top-down idea generation process, a rigorous bottom-up evaluation of company fundamentals takes place. This research analysis vets companies for the highest quality earnings growth because there is an extraordinarily high correlation between a company’s earnings growth and its stock price.
Securities passing the rigorous screening process are then given a quantitative ranking based on their fundamentals, valuations and technical analysis. A concentrated portfolio is constructed using a universe of 100 stocks, but is unlikely to own more than approximately 20 stocks at any given time.
The General Partner establishes targets for valuation, stop-loss, gross, net and industry exposures. Options are used to hedge risk at the position and portfolio level, and to mitigate tail risk. Long and short concentration limitations are also established and monitored.