Fund Portfolio Management
SPM primarily provides investment management services to the Dynamic Hedge alternative
investment fund ("Fund") established in 2003 by Tony Saliba. SPM utilizes its extensive
knowledge and expertise to actively manage the Fund's portfolio.
The strategies designed by SPM for the Fund combine a basket of option collar positions
with various other defined-risked options strategies. SPM employs a systematic approach
to apply and manage the Fund’s strategies – the portfolio strategists are not “stock pickers”.
SPM utilizes proprietary timing, volatility, skew and options maturity analysis models to
determine optimal portfolio positions.
The strategy employed by SPM for the Fund is long‐biased, while providing capital
preservation in the event of large downside market moves. This strategy is designed to take
advantage of increases in market volatility and changes in skew, and is capable of
generating income in flat or "sideways" markets. To implement the strategy, SPM trades
highly liquid exchange traded options and futures, eliminating over the counter (liquidity)
and valuation risk, using on average less than 35% of the Fund’s net asset value to achieve
performance targets.
The strategy employed by SPM for the Fund provides a means of controlling systematic or
market risk that cannot be achieved through equity diversification alone. Active
management by SPM of the fund’s portfolio has enhanced its performance over time.
Customized Options Overlay
SPM also provides customized investment management services to individuals. Generally,
these clients will have large holdings in a single stock or a portfolio of stocks. For these
clients, SPM will develop a customized options overlay based on the desired risk/reward
profile of the client. These strategies can range from an income generating strategy such as
a "covered call" program, to a "collar" strategy which can provide protection in the case of a
large downside move. SPM has a proven record that shows how these strategies can
decrease the volatility of the net asset value of a portfolio.
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