The Eventurum Capital long short equity fund structures the portfolio to mitigate individual company risk while driving returns from three specific factors.
We believe this allows us to have a different stream of returns that are not correlated to the market and most long short equity funds.
The portfolio consists of ~90 long/short pairs, with each pair targeting near market neutral exposure.
Gross exposure is maintained at ~190% without using derivatives.
All pairs are weighted by volatility - not conviction.
Each pair is highly correlated to fundamental factors on a relative basis, not absolute.
The factors applied differ throughout the portfolio, but each is derived by profitability metrics.
Most pairs in the portfolio parallel the movement of one or more macroeconomic data points.
While some data points are more widely followed, many others are rarely discussed.
Sentiment can move pairs beyond an area that is justified by relative fundamentals and macroeconomic data.
Numerous market based indicators have been built to help measure current positioning and how it is changing.