Liverpool Capital Management Overview
Investment Objective: The Liverpool Capital Management managed account programs seek to maximize investment returns by capitalizing on derivative opportunities within the futures and options trading environment. The goal is to manage risk levels that can be balanced with the desire to preserve the principal contributed to our programs.
Investment Strategy: The managed programs currently fall under three different banners. The Power CTA Program, the 20% program, and the 30% program. Each program is designed to fulfill the needs and goals of individual investors. The Power CTA Program follows a simple philosophy. LCM finds CTAs or exempt traders with the ability to meet our particular monthly and quarterly profit and loss expectations. How we pick and choose the traders that work for us is proprietary.
The 20% program and the 30% program are tailored made specifically to a clients long term retirement and investment needs. That being the case the minimum investment typically exceeds our base investment of $100,000. The reason the minimum can get higher is because these two programs are designed to fully diversify all of your investing through futures. You can obtain exposure to the stock market, bonds, and the overall commodity market in one futures account. This is a little known and even less exploited concept that we are pioneering at our firm.
First, the Manager creates credit spreads by simultaneously purchasing and selling put and call options with differing strike prices and expiration dates. Using primarily S&P 500 futures contracts, the Program’s assets profit from price differences between the long and short options due to the volatility inherent in the market, the spread between the market and option strike prices, and, most importantly, the decrease in the time to expiration of the options. Second, the Manager purchases out-of-the money puts with differing strike prices to hedge the downside risk associated with extreme downward events in the market and significant increases in volatility, and to take advantage of time premium decay rate differences.
Risk Management Procedures
Our various risk management procedures are implemented on an as needed basis. The activity is based on proprietary information designed to preserve capital and maximize profit opportunity.
