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Liquid Alpha Income Fund (LAIF)

Market-neutral absolute-return strategy based on index options with a conservative risk profile

Stable, predictable income

100% positive months since inception

Weekly liquidity

Strategy

Systematically sells weekly options on stock indexes; opens positions that have a 99.5+% statistical probability of positive results

Assets

Options on the main US stock indexes

Better than

Bank deposits, short-term money-market instruments, conservative equity market portfolios

Who it’s for

Investors who want to earn a stable income in line with or above inflation

Target net return

6-7%

Risk profile

Risk of losses in line with default risk of BBB/A- rated banks (e.g., Societe Generale, Barclays, Saxo Bank, UBS)

Данные материалы не предназначены для резидентов ЕС, Великобритании и США и не являются предложением для инвестирования

Historical Profitability

Value of $100 invested on September 1, 2020

LAIF Strategy (Gross Performance Before Management Fees)

BarclayHedge Option Strategies Index

HFRX Absolute Return Index

USD-deposit

Historical metrics

Return in USD, % annualized

7,9

Maximum monthly drawdown, %

Correlation with Nasdaq 100

-0,1

Sharpe ratio

3,0

Sortino ratio

13,2

% of positive months

100

Pros

Stable, predictable income

Conservative risk profile

Minimal volatility

100% positive months since inception

Short investment horizon (Monday-Friday)

Weekly liquidity

Reliable infrastructure

Transparent results

Cons

Returns are driven by market volatility, so they may lag historical averages in periods of smooth, steady growth in the stock market.

Michael Portnoy, Senior Partner, Strategy Advisor

27 years in the investment industry
13 years developing and analyzing trading strategies, systematic trading in equity, futures and options markets
Eight years selecting, analyzing and managing portfolios of hedge funds and absolute-return strategies in global securities and commodity markets
Worked at major Russian banks and wealth management firms like Alfa-Bank, Uralsib, GHP Group, MDM Management Company and Alfa-Capital; headed global markets, hedge fund and commodity trading desks
Specialist in absolute-return products and market-neutral strategies in the futures and options markets
Graduate of Baruch College CUNY (Finance & Investments)

Minimum initial investment:

$250,000

Bank:

Northern Trust

Investment horizon:

Three months and longer

Broker:

Marex

How to invest:

LAIF and FLAG funds or Interactive Brokers individual accounts (depending on needs of each investor) – contact us for more information

Administrator:

Apex Fund Services

Andrey Movchan on LAIF

Success in investing often is about who can do the math. The LAIF Strategy is an excellent illustration of this theory: to build it, we had to develop an advanced mathematical model. Without the long experience in options trading that we brought to bear, as well as our understanding of the structure and nature of the market, this product would not have come into being, and in this sense, LAIF is a success story of collaboration with Michael Portnoy.

I invest in LAIF and recommend it to our clients who want to keep part of their savings in a market-neutral product with high liquidity. I have tried to find superior alternatives to the LAIF Strategy, but it is unrivalled – it is not for nothing that I put in all that work studying mathematics and Michael Portnoy, the manager of LAIF, acquired all that trading experience.

Still have questions?

Our specialists are always ready to help you to find the right investment strategy and answer all your questions. Contact us today!