Our Investment Strategy

Strategy Overview

Systematic Options Segment

The Systematic Options Strategy capitalizes on two critical flaws in VIX-Related ETFs:

Flaw #1: Contango Price Movement

    • Our research indicates that VIX ETFs containing futures contracts decline in value because the futures price is almost always higher than the value of the front month contract.

Flaw #2: Reverse Stock Splits

    • As VIX ETFs lose value, the total number of shares is reduced in order to increase the ETFs value and prevent it from going to $0.

Specific VIX-related ETFs were designed to mimic the moment Volatility of the VIX index, but over time these ETFs have declined in value creating massive losses for average investors who may not understand the underlying structure and mechanism of these products. We systematically take strategic positions to capitalize on what we expect to be consistent year-over-year value decay in these ETF products.
Strategy Overview

Long/Short Segment

Non directional strategy. We identify temporary-in-nature structural supply/demand imbalances & permanent disruptions created by fundamental as well as non-fundamental factors.

Liquidity provisions. Positions in portfolio can be turned over within a short time frame without market impact. We typically invest in stocks with an average daily volume above 1 million shares.

Actively-traded portfolio primarily in mid & large cap public equities

      • Trading around core positions
      • Focus on short-term opportunities
      • Use cash position to increase exposure into market weakness and for opportunistic volatility and ETF trades

Strong Risk Management Approach

      • Positions are held through earnings primarily by utilizing options to reduce downside risk

      • Low gross and net exposures

      • Use of proprietary modified real time VaR model to calculate appropriate exposures given market volatility and several other factors. Portfolio construction based on observation of markets. We seek to invest in areas where we have an edge

Systematic Options Strategy

  • 100% systematic
  • Contrarian positioning
  • Proactive for bearish market sentiment
  • Strategy for high and low volatility
  • Pre-defined risk management per position
  • Positioned in high volume, liquid instruments
  • Systematic selection process
  • 30-day limited exposure per option leg
  • Diversification using multiple algorithms per instrument
  • On-shore fund available for US investors & off-shore fund available for non-US investors.

Long/Short Strategy

  • Combines fundamental and technical analysis

  • No directional bias

  • Capitalizes on market inefficiencies

  • Allocates to primarily to highly liquid US mid and large cap stocks

  • High beta growth stocks

  • Some small caps with tighter position limits and defined risk parameters.

  • Blend of growth and value equity opportunities.


20-22 Wenlock Road, London England N1 7GU


+44 20 3769 9649



We provide investors with an opportunity to invest differently

© 2023 VIX Capital Partners