The Total Return Fund
The Total Return Fund is a Performance Fee Only Investment Portfolio, which was started in 2014.
Funds Mission: Achieve the highest rate of return while protecting against loss of capital risk.
How: Picking fundementally 'under valued' or 'catalyst event driven' positions with 'aysmetic' 'reward/risk ratio' potential, while construting the portfolio of uniquely uncorrelated assets, to 'hedge against risks'.
A 'long only' fund that can buy any asset, Stocks, bonds, ETFs, Options(calls and puts), Convertible Securities, Warrants.
Why:
Proper investment management isnt just picking stocks, or throwing money into a bunch of different assets hoping the market doesnt fall. Proper investment management is building a portfolio that if the market falls you are protected or at least mitigate risk of loss.
We have made it our goal to continuely find the highest asymentic reward to risk ratio, capitalizing on upside, while making sure we simultaneously strive to find ways to hedge or protect the risk of loss in any potential event.
Whats special abt building a portfolio targeting correlations:
Building out a portfolio of 'uncorrelated assets' mitigates market risk. An example of this is 'buy a stock, and you can either buy a 'put option' to be 'inversely correlated'(stock goes down, put value goes up), or buy another position to be uncorrelated or close to inversely correlated'. The 'put option' is ideal because it directly protects you to the downside, aside from the 'price of the premium paid'. But if you set it up in one or multiple positions that are uncorrelate you can come close to achieve a similar ability to Hedge against downside risk, and protect against capital losses without having to pay for the 'premium of the put'. There are many ways of doing this, none of which are bullet proof, but in a long only fund with the ability to buy options(because most clients can not short because it brings on too much liablity and risks), this provides a Great way to manage investment portfolios for clients.
*Disclosures:
This Fund is ONLY for Qualified pre-screen clients.
First Class Capital does NOT have custody of any clients assets. All assets are with a qualified custodian in the clients personal account, and the assets are actively managed by first class capital to Mirror the Total Return Fund.
*This is not a solicitation to enter the fund.
We are very happy with our portfolios performance and Will Post Track Record Soon:
