RJA Global Hedged Equity Strategy

The RJA Global Hedged Equity Strategy provides qualified institutional investors with a customizable solution to access global volatility risk premium and achieve equity-like returns with reduced volatility

Key Advantages

  • Customizable benchmark

  • Liquid, transparent and rules-based investment process

  • Access to the volatility risk premium

  • Alternative source of return that provides diversification benefits

  • Rigorous research foundation

  • Experienced management team

Strategy Description

The RJA Global Hedged Equity Strategy systematically sells  cash-secured put options to harvest the volatility risk premium. The strategy utilizes a combination of securities associated with broad equity market indices (e.g. S&P 500, MSCI EAFE, MSCI EM, etc.) to achieve the investment objective while maintaining a low tracking error. While the preferred benchmark is 70% MSCI ACWI + 30% 1-Month T-bill, the benchmark can be fully customized to meet client needs. The strategy employs a proprietary trading algorithm to collect more volatility risk premium, rebalance delta and de-lever on the downside.

The strategy is constructed using flexible components and is fully customizable to clients' specific benchmarks.