B C P C A P I T A L

Strategy

Macro & Managed Futures Funds

Macro funds are opportunistic in nature, use top down approach to analysing global macroeconomic events, and can invest on based on forecasts of econimic growth.

Since 2000, Institutional investors have incresingly forced global macro managers to pursue more well defined strategies.

Subcategory of Macro & Managed Futures Funds

Characteristics of Macro Fund :

  • Differences in the polices pursued by the central bank.
  • Tax regulation discrepancies between regions.
  • Divergent opinions about future market
  • Business cycle discrepancies between countries
  • Behavioral biases exhibited by market participants
  • Monetary policies
  • Macro coutry events (plotical instability,unanticipated central bank activities, increased soverign debt risk)

Thematic investing :

Macro fund Sub category

Thematic investing stratergies are based on secular or fundamental economic variables or relationship rather than on specific markets or securities.

Trend Following stratergy :

Managed Future Sub category

Trend following strategies refer to trading strategies that attempt to exploit predictable price patterns after the trend has begun (i.e., wait for the trend to emerge, then follow it). Examples include moving average and breakout strategies.

Relative value Strategies :

Managed Future Sub category

Relative value strategies attempt to exploit price inefficiencies between two related ( correlated future contract or between different maturities on the same contract. Relative value arbitrage involves the simultaneous purchase and sale of two highly correlated contracts that are deemed to differ from their fair value.

Ticket value :

A micro-hedge is an investment technique used to eliminate the risk of a single asset from a larger portfolio. In most cases, a micro-hedge involves taking an offsetting position in that single asset. Offsetting positions can include taking short positions in similar shares, or options or futures contracts of that same asset.

  • Minimum Ticket Size - INR 1 Cr
  • Tentative ROI - 18 - 20%

Fee Structure


☛ 2% AMC (Annual Maintenance Charges) on the Total Investments.

☛ Extra charge of 10% applicable if the return goes above the committed (Return on Investment.)