RJA provides a quantitative approach to establishing portfolios of equity options for institutional clients. RJA's services are either customized to the client's specific preferences and needs or provided "off-the-shelf" in the form of a Fund.
RJA's customized services include designing and establishing portfolios of equity index options with the aim of:
- Altering the risk-return profile of a client's existing investments and exposures (Overlay);
- Generating a positive return while being uncorrelated with market movements (Alpha); or
- Replicating the market risk exposure of some specific asset class, such as Private Equity (Return Replication)
Customized Services - Overlay Business
In the Overlay business, we establish overlay portfolios of derivatives that alter the risk-return profile of existing investments and exposures. In tailoring our recommendations to each client's specific preferences and needs, we take into consideration existing positions, risk tolerances, capital constraints, policy considerations and other client-specific factors as may be appropiate.
The Overlay business was developed to meet a range of client needs stemming from portfolios of equity securities held as investments by corporations, defined benefit plans or endowments.
Customized Services - Alpha Business
The Alpha business was designed to supplement a client's existing investment portfolio by providing a source of expected returns. A portfolio of S&P 500 Index Options is constructed that aims at achieving positive returns across all market conditions.
Customized Services - Return Replication Business
The Return Replication business was designed to provide a liquid alternative to investments in alternative asset classes, such as private equity. Please see our white paper on this topic under the research tab on this site.
The Fund business provides an attractive investment alternative for institutional clients.
RJA PutWrite Select Fund
The RJA PutWrite Select Fund follows an active, cash-secured put writing strategy. Similar to the CBOE PUT Index, the Fund sells one-month at-the-money CBOE S&P 500 Index put options, and collaterializes the SPX Puts with short term Treasury Bills. Rather than holding each option until maturity, RJA dynamically closes and re-establishes positions based on a propietary algorithm that factors the market movements.
The Fund launched in April 2016, and is being offered to a limited number of qualified institutional investors.