While the markets are uncertain, Zero Delta and our managers will remain consistent, and never lose track of our three core philosophies - Maintaining ZERO DELTA, PRESERVING CAPITAL and remaining TACTICAL.
Zero Delta
Non-directional relative value volatility strategies
Market neutrality with little correlations to market indices
Absolute Return - perform in all markets
Positions with asymmetric return profiles
Capital Preservation
Protecting capital is paramount - All Zero Delta managers share this philosophy
Covered tails - Preparing for how black swan events affect portfolios
Concentration limitations
Knowing how to effectively scale back a position and the humility to do so
Knowing what key factors drive not only profits but potential losses
Skin in the Game - A high percentage of wealth invested in their strategy
Managers consider fund capital as their own and don’t take on excess risk
If there is nothing worth doing, do nothing
Tactical
Seeking out experienced break-away managers
Not smarter than the market - Zero Delta funds are agile and adjust quickly
Don’t outsize the opportunity - Position according to edge and ability to balance
Focusing on smaller funds - Adds to Alpha and contributes to performance
Zero Delta is not an asset gatherer- Sources funds with niche opportunity sets
Managers concentrate on performance and creating alpha not raising assets.
Managers take advantage of opportunities often too small for large institutions
Funds tend to close to new investors early in their life cycles
Take advantage of the early success managers can have with less capital
Zero Delta can satisfy larger allocators by giving them more capacity than any one individual fund or strategy with less operational complexity