Investment and Trading Strategy
We employ a multi-faceted investment and trading strategy designed to deliver consistent returns while managing risk effectively. Our approach is rooted in a combination of long-short equity, macro themes, and event-driven strategies, complemented by disciplined risk management.
Investment and Trading Strategy
At Lakemore Capital, we employ a multi-faceted investment and trading strategy designed to deliver consistent returns while managing risk effectively. Our approach is rooted in a combination of long-short equity, macro themes, and event-driven strategies, complemented by disciplined risk management.
Long-Short Equity
Our long-short equity strategy focuses on identifying undervalued stocks (long positions) and overvalued stocks (short positions) across various sectors. This approach allows us to capitalize on market inefficiencies while mitigating the impact of broader market movements. We leverage deep fundamental analysis and advanced quantitative models to select high-conviction positions, ensuring a balanced and diversified portfolio.
Macro Themes
We integrate macroeconomic analysis into our investment process, identifying broad economic trends that influence global markets. By understanding these macro themes, such as interest rate changes, geopolitical developments, and economic cycles, we position our portfolio to benefit from anticipated market shifts. This top-down approach helps us align our investments with prevailing economic conditions, enhancing our potential for returns.
Event-Driven
Our event-driven strategy focuses on capitalizing on specific corporate events that can create significant value or disrupt market prices. These events include mergers and acquisitions, earnings announcements, regulatory changes, and corporate restructurings. By carefully analyzing the potential impact of these events, we position our investments to take advantage of resultant price movements, aiming to generate alpha from unique opportunities.
Short-Term Trading
In addition to our core strategies, we engage in short-term trading to exploit momentum and structured trades. Utilizing both futures and options, we identify and execute trades based on technical analysis and market structure. This tactical approach allows us to capture short-term market inefficiencies and enhance overall portfolio performance.
Hedging and Risk Management
Risk management is a cornerstone of our investment philosophy. We employ rigorous hedging techniques, including position sizing and maximum drawdown calculations, to protect our portfolio from adverse market movements. Our risk management filters are based on percentages from the equity balance, ensuring that our exposure remains within predefined limits.
We are committed to maintaining a maximum drawdown limit of 10% for any investor, safeguarding their capital and ensuring long-term sustainability. This disciplined approach to risk management allows us to navigate volatile markets confidently and maintain the trust of our investors.
Conclusion
Lakemore Capital's investment and trading strategy is built on a foundation of thorough research, strategic flexibility, and prudent risk management. Our combination of long-short equity, macro themes, event-driven strategies, and short-term trading positions us to capitalize on diverse market opportunities while protecting our investors' capital. We remain dedicated to delivering consistent, risk-adjusted returns through patient and disciplined investment practices.