Welton Advantage
Equity Hedge
Welton Advantage, the firm’s equity hedge program, seeks to diversify passive equities by combining active equity returns with improved risk management and downside capture over a full range of market conditions. The strategy applies systematic strategies in a multi-layer design across a potential universe of 1,000 equity securities, futures, and options seeking active return and/or risk advantages from each layer.
Welton Advantage seeks to deliver:
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Return Advantage: Outperform its peer group over an investment cycle.
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Downside Advantage¹: Outperform with less downside during periods of broad equity market declines.
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Risk Advantage: Higher risk-adjusted returns than its equity index benchmark.
¹ “Downside Advantage” is defined as cumulative outperformance during negative performance months for the MSCI World Index, achieved via Welton Advantage’s diversifying active equity and active global futures and options strategies that seek to mitigate losses during equity market correction periods. By design, the diversifying strategies are constructed to be uncorrelated and even negatively correlated to the equity universe over reasonable holding periods, however, performance correlations may periodically rise over shorter time periods. There is no guarantee that diversifying strategies will prevent against losses from the active equity portfolio or from each other. Moreover, investors may experience greater losses due to the inclusion of the diversifying strategies.
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Process Focus
Philosophy
- Centers on managing risk and capturing returns from multiple levels
Design
- Applies systematic strategies in a multi-layer design across a potential universe of 1,000 equity securities, futures, and options seeking active return and/or risk advantages from each layer.
- Principal layers:
Welton Performance Awards
Curious About Our Performance?
Complete the form to receive a current fact sheet via email.
Care to Learn More?
Complete the form and we’ll be glad to answer your questions and/or arrange a time to speak.
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The information contained herein is not for retail investors but intended for use by institutional and professional investors including “Qualified Purchaser” within the meaning of the 1940 Act which also qualifies it for the status of “Qualified Eligible Person” under CFTC Regulation 4.7. Alternative investments are speculative, involve substantial risks and are not suitable for all investors. This information is not a solicitation for investment. Such investment is only offered on the basis of information and representations made in the appropriate offering documentation. Past performance is not necessarily indicative of future results. Welton Investment Partners LLC is a Delaware limited liability company that provides investment advisory and day-to-day operational services previously assumed by Welton Investment Corporation, its predecessor, which itself merged from a California corporation originally formed in 1988.
