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SPM provides specialized investment management services focused on the use of customized options strategies utilizing the proven, proprietary investment strategies and risk management techniques developed by its founder, and internationally recognized derivatives trading expert, Anthony J. Saliba.
Fund Portfolio Management
SPM primarily provides investment management services to Dynamic Hedge, LLC, an alternative investment fund established in 2003 by Anthony J. Saliba. SPM utilizes its extensive knowledge and expertise to actively manage the fund's portfolio which contains option "collar" positions in the individual stocks of the Dow Jones Industrial Average ("DJIA"), as well as various other defined-risked strategies on market indexes. The trading strategy is primarily rules based, and positions are held across all stocks in the DJIA, as dictated by the SPM's analysis and trading rules. Position quantities are standardized across all stocks to maintain the diversification of the fund. Specific entry and exit points are dictated by established trading rules in conjunction with proprietary analysis techniques.
The goal of the trading strategy is to perform alongside its benchmark index, the DJIA, on the upside while minimizing losses in the case of a move lower. The strategy is also designed to generate income in a sideways market. SPM's active management of the fund's collar positions utilizing timing, volatility, skew and option maturity analysis models sets it apart from other, non-actively managed, collar funds. By utilizing options positions, SPM is able to replicate owning the Dow 30 stocks while utilizing only a fraction of its capital. On average, SPM typically only has 40% of the fund's capital in the marketplace to meet its performance return targets, which further reduces the risk exposure for investors.
One element of the trading strategy employed for the fund that makes it unique is the Alpha trading portion of the strategy which is based on technical patterns of trends over several time frames as well as some risk-defined strategies. The Alpha trading portion of the strategy incorporates technical, volatility and skew analysis and generates income for the fund by taking advantage of time decay that is inherent in the options market.
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 ("NAV") of a portfolio. SPM will then establish a managed account in which SPM will provide dynamic management of a protective options position, which can be implemented on a single stock, an index, or a basket of stocks.
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