Investment Programs
RL Capital Diversified Futures Strategy
Investment strategies created by RL are meant to be full service, fee-based products where clients retain full control of their assets, whether they are individuals or institutions.
Philosophy
RL Capital’s philosophy for developing investment strategies is based on applying time-tested principles to an advanced research process. In our view, long-term investment success is predicated on a strict focus on risk management within a rigorously tested and well-researched plan. Our quantitative, price-based investment models are built on these principles providing, in our opinion, the largest opportunity to compound gains and avoid large losses over long periods. These core principals are outlined further below:
Risk Management
Risk management is considered by RL Capital to be absolutely critical to successful investing and is the core component of our investment philosophy. We understand the importance of money management believing that superior results are a function of proper, disciplined techniques. All of our investment strategies contain the following characteristics.
• Systematic - eliminate emotion from the investment process; always have a plan
• Trend – never fight the predominant market direction; things in motion tend to stay in motion; opposing the market brings significant additional risk
• Diversification – constructing portfolios with a broad range of non-correlated assets
• Discipline – Unwavering execution of tested investment process if outright automation is impractical
All RL strategies emphasize maximizing the ratio of return to risk. These core principles give us the best chance to yield a return for our clients while minimizing two of the most detrimental aspects of investing – volatility and drawdowns. Volatility has many practical and statistical definitions, but we choose to think of it as the degree and frequency to which a client’s portfolio will swing, either up or down over a given period of time. For example, an account where daily changes of plus or minus 3 percent are common would be said to be more volatile than an account typically seeing changes of only 1-2 percent daily. Drawdown is related to volatility but different. It is a measure of how far an account has fallen from its previous all time high level, adjusting for things like withdrawals and contributions to the account. Drawdown is one of the simplest ways to measure how much money a client has lost over a period of negative performance and synonymous with the amount of anxiety a client might feel about his/her investment plan. Accounts experiencing more volatility will be more likely to have greater drawdowns.
Research Process
The RL Capital research process begins with setting aside personal biases or feelings about the market and using proven statistical techniques to test various ideas about market behavior. Any new concepts put through our testing process are done so keeping in mind certain, unchanging fundamentals mentioned previously, namely systematic risk management incorporating diversification and rigid discipline in the implementation process.
Specifically, new ideas are tested for both worst and best case scenarios to ensure reliable outcomes for a range of market conditions over a long period of time. For example, a system can be built that would exploit any one set of markets or market conditions wonderfully, but may fail at providing a consistent return or at protecting capital during a different set of conditions. While our individual systems are not built to make money in every market timeframe as we believe this is unreasonable and impractical, they are designed to take advantage of a certain range of conditions while preserving capital in others.
Client Services
RL Capital maintains an unwavering commitment to customer service. We feel uniquely positioned by offering clients real-time access to our managers and traders, ad-hoc data analysis and relevant marketing materials. We treat every client as a partner and place a premium on honest, transparent communication at all levels of our firm.
For additional information regarding existing programs or products please call us at (800) 765-6936.
Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors.
Past performance is not indicative of future results.