ACM Market Neutral Volatility Strategy Fund
The ACM Market Neutral Volatility Strategy Fund, our flagship investment vehicle, allows investors the possibility of returns in both bull and bear markets, while maintaining liquidity and minimizing drawdowns.
The ACM Market Neutral Volatility Strategy Fund seeks to provide investors with consistent returns by taking advantage of opportunities in the volatility expectations of the S&P 500 Index.
The strategy uses a dynamic, machine-learning based, predictive analytical model which performs well in bear and bull markets, with minimal Beta correlation. The fund’s strategy is long/short volatility of the S&P 500 Index.
•The strategy focuses on data driven predictive analytics, powered by machine learning algorithms, to identify opportunities where the market underestimates or overestimates future expectations of volatility
•S&P 500 volatility expectations at 30 days are defined by the VIX index, which tracks the prices of a series of index options. VIX futures act as a secondary derivative of volatility, and define the expected value of the VIX index at a specific future time.
•In general terms, bull markets overprice VIX futures, resulting in Future Risk Premium (FRP) and bear markets underprice VIX futures, but overprice S&P 500 Options, resulting in Volatility Risk Premium (VRP).
•Future uncertainty in the US equities markets requires a strategy capable of adapting and performing well in multiple market conditions.
AI-Powered Algorithmic Trading
Data across the S&P 500 index and its options, as well as the VIX and VIX futures markets provides valuable insight into opportunities to enter positions, as well as when the markets have normalized, signifying exit.
•The strategy dynamics are driven by algorithms created by Apis’s team of experienced traders, machine learning and quantitative market experts.
•The algorithms are developed through extensive market simulation that is analyzed by Recurrent Neural Networks, using BPTT and LSTM techniques.
•Ongoing machine learning enables the strategy to evolve over time, adapting to changing market conditions, and allowing it to maintain its edge.
•Stress testing of the Neural Networks with out-of-sample data and Batch Normalization ensures that the strategy’s adaptation does not result in overfitting.
Monthly returns are available to prospective accredited investors through:
or by Contacting Us for an Investment Prospectus.
The performance of the Apis Token, which is designed to participate in the profits of the ACM Fund Strategy and effectively tracks it, is described here.
Prior performance is not indicative of future results. The awards and rankings listed are provided by each individual database, and are based on a comparison with other firms and funds in the same category, listed in each individual database. The awards and rankings do not represent a comparison with all firms or funds.
Past performance is not a guarantee of profits. Investments may lose value.
Please read the full disclaimer in the Private Placement Memorandum for full details on risks and performance.
Awards and Recognition
- Ranked #4 out of 540 listed funds by 3-year Return (2017)
- Ranked #5 Fund by YTD Return (out of 540 listed Funds) (2017)
- Ranked #1 of 62 Option Strategy Fund by YTD Return (2017)
- Ranked #3 of 197 Overall Hedge Funds between $1MM and $10MM AUM by YTD Return (2017)
BMFR 1st Q 2018 Edition - BMFR - Past Year Ranked By Compound Annual Return
December 2017 - Performance Award - Options Strategies Ranked By Net Return
2017 - Yearly Award - CTAs Managing Less Than $10M Ranked By Net Return
December 2017 - Performance Award - CTAs Managing Less Than $10M Ranked By Net Return
2017 - Yearly Award - Options Strategies Ranked By Net Return
April 2018 - Performance Award - Options Strategies Ranked By Net Return
April 2018 - Performance Award - CTAs Managing Less Than $10M Ranked By Net Return
May 2018 - Performance Award - Options Strategies Ranked By Net Return
May 2018 - Performance Award - CTAs Managing Less Than $10M Ranked By Net Return
November 2018 - Performance Award - Options Strategies Ranked By Net Return
November 2018 - Performance Award - CTAs Managing Less Than $10M Ranked By Net Return
- Ranked #3 Niche Strategy Fund by 2017 Return
- Ranked #4 Overall Funds 2017 return (Out of 300 Listed funds)
- Preqin Top Performing Hedge Funds in 2017
The performance and awards above refer to the performance of the ECM Income Opportunity Fund from January 2016 to December 2017, and the ACM Market Neutral Volatility Strategy Fund from January 2018 onwards. Both funds use the same strategy, and all investors in ECM switched over to ACM as of January 1st 2018.
The fund actively manages risk, using a key proprietary trading model which reduces risk when the fund's holdings are subjected to stress while maintaining the income stream from the positions that are held. The risk management strategy has proven to be effective during times of crises.
The greatest risk to the fund is a significant, one-time event that would disrupt the financial system and prevent the fund from adjusting its positions to implement its risk management strategy. This would be unlike the 2008 financial crisis, which although significant to most investors, occurred over a period of a year.. The riskiest event is a one-day catastrophe, and such an event, while certainly possible, is unlikely and would also greatly affect any other financial investments.
The potential for profit is not guaranteed, and substantial risk of loss exists. Investments may lose value.
The minimum investment is currently $250,000. Smaller investments may be considered on a case by case basis.
Subscription Fee: None (currently)
Management Fee: 2% p.a.
Incentive Fee: 20% of profit above High Water Mark
Apis Capital Management also offers the newer type 1-or-30 Fee Structure. Please contact us for details.
As the fund invests in securities that are publicly traded with very high volumes and high liquidity, our clients' investments in the fund are nearly as liquid as cash. As such, redemption from the fund is typically available on a monthly basis.
This information does not constitute an offering of the Fund. Please request an Offering Memorandum for full details of the Fund. Investments are subject to risk.