Strategies

Talenta Capital was founded 2009 and specialises in the development and trading of systematic, quant-based strategies using futures instruments.

The relevant tabs offer an overview of each of our strategies:

  • Diversified
  • CTA
  • S&P 500 Momentum

All Funds are underpinned by our proprietary, systematic capital allocation and risk management methodology.

We have over a decade of trading and systems experience, including working with both Tudor and TT International.

Monthly performance is available from a range of websites including: IASG, BarclayHedge, Hedge Fund Research and Eurohedge.

Gross daily returns are available as part of due diligence process on request.

Talenta Capital LLP is authorised and regulated by the Financial Conduct Authority, reference number 503146. Investors wishing to learn more are invited to contact Mark Bryant at Talenta Capital (mark.g.bryant@talentacapital.com) to arrange an initial discussion.

Summary

The Diversified Fund offers investors a range of uncorrelated, systematic and momentum trading strategies that trade highly liquid futures across global markets and S&P500 sectors. The Fund targets annual growth of 10-15% at a level of volatility below 10%.

Investment Strategy

The CTA and Momentum strategies are designed to capture market upside and offer protection against adverse market events offering ‘attractive correlation’ which is structural in nature.

Portfolios are created using algorithms with few tuneable parameters, are risk-adjusted and regularly re-balanced.

The approach is designed to offer structural resilience in both range-bound and trending markets.

Risk Management

Proprietary capital allocation, capital preservation and risk management algorithms operate across and within strategies enabling drawdown reduction and low latency market recovery.

Risk management is applied at Fund, strategy, sector and instrument levels.

Risk management techniques include:

  • volatility adjusted position sizing
  • low parameter, price-driven threshold analysis
  • volatility ranking
  • correlation controls
  • limitations on equity per position
  • portfolio heat-based risk management
  • risk free rate threshold to underpin absolute return intent

The operational architecture is almost fully systematic reflects decades of systems and trading experience. A manual step exists within the architecture to check each systematic trade – no adjustments or delays have occurred since 2009 but this offers additional investor execution protection against unexpected system orders. Execution methods are measurably beneficial compared to less integrated environments.

Download the overview:

Talenta Capital – Diversified Overview.pdf

Summary

The CTA Fund offers investors access to Talenta Capital’s systematic trend following trading strategy which takes long and short trades in highly liquid futures across a range of global markets. The strategy is designed to offer uncorrelated returns and a measure of protection against adverse market events. The CTA strategy targets annual growth of 10-15% at a level of volatility of 10-15%.

Investment Strategy

Portfolio creation algorithms have no tunable parameters, exploit price pattern information, avoid lagged indicators and apply correlation controls when identifying potential trades. Position sizes are risk-adjusted. The strategy is designed to offer structural resilience in both range-bound and trending markets. The operational architecture reflects decades of systems and trading experience.

Risk Management

Five key principles used to control risk include:

  1. Dynamic capital allocation enabling reduced risk of Fund drawdowns;
  2. Proprietary, systematic risk management at fund and position levels combined with risk-adjusted position sizing;
  3. Portfolios designed to be systematically uncorrelated at the instrument level, reducing potential exposure to adverse events in specific markets;
  4. Lack of leverage applied to underlying instruments combined with high liquidity execution methods, enabling reduced slippage and downside volatility;
  5. Structural long term non-correlation of CTA with equities markets.

Download the overview:

Talenta Capital – CTA Overview

Summary

The S&P 500 Momentum Fund offers investors a momentum trading strategy that trades highly liquid futures across S&P 500 sectors. The Fund targets annual growth of 10-15% at a level of volatility of 10-15%.

Investment Strategy

The S&P 500 Momentum strategy is designed to capture market upside and offer protection against adverse market events, exploiting absolute momentum and relative momentum factors which are structural in nature. Portfolios are created using algorithms with few tuneable parameters, are risk-adjusted and regularly re-balanced. The approach is designed to offer structural resilience in both range-bound and trending markets.

Risk Management

Proprietary capital allocation, capital preservation and risk management algorithms operate across and within strategies enabling drawdown reduction and low latency market recovery. Risk management is applied at fund, sector and instrument levels. Risk management techniques include: – volatility adjusted position sizing – low parameter absolute momentum and relative momentum threshold analysis – volatility ranking – limitations on equity per position – risk free rate threshold to underpin absolute return intent The operational architecture is almost fully systematic reflects decades of systems and trading experience. A manual step exists within the architecture to check each systematic trade – no adjustments or delays have occurred since 2009 but this offers additional investor execution protection against unexpected system orders. Execution methods are measurably beneficial compared to less integrated environments.

Download the overview:

Talenta Capital – S&P500 Momentum Overview