The opportunity
Welton’s systematic global macro strategy seeks to provide uncorrelated return streams from trending and mean-reverting capital flows in highly liquid markets. Welton has designed the strategy to have a low correlation to broad equity and credit markets, and with the potential to provide positive absolute returns during equity market sell-offs when investors rely on liquid alternative strategies to deliver. This tail risk protection is sought while still offering the potential for positive returns in more normal times by dynamically allocating to underlying strategies depending on the prevailing market conditions.
About the manager
Welton Investment Partners was founded in 1988 to provide investors long term capital appreciation and tail risk protection through a scientific approach to quantitative investing. Established by Welton’s CIO Dr Patrick Welton, the firm has 30 years’ experience trading through all market conditions. Welton manages US$1.1bn in assets for institutional, endowment, and private investors with offices in New York and California.
About the strategy
Launched in 2004, Welton Global is the firm’s flagship systematic global macro strategy. The strategy utilises a proprietary set of 30+ underlying strategies spanning trend, enhanced trend, short-term, non-directional, and risk-off alpha. Allocations to risk-off alpha strategies use a variety of signals to only engage during equity market sell-offs helping deliver positive absolute returns whilst not drag on returns in other market environments. By trading a wide range of liquid instruments across multiple market dynamics, Welton has delivered uncorrelated returns while also delivering long-term capital appreciation and tail risk protection.
0. THE TRADING PROGRAM DESCRIBED HEREIN IS SPECULATIVE, INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS. NO REPRESENTATION IS BEING MADE THAT ANY INVESTOR WILL OR IS LIKELY TO ACHIEVE SIMILAR RESULTS. THIS DOCUMENT 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. ↵ Return to the reference
1. The strategy was launched in June 2004 and is available as a fund and in SMAs. ↵ Return to the reference
2. As at 31 March 2023. Reported assets under management are based on the nominal trading size of all client accounts notwithstanding the instruments traded and pursuant to the terms of the relevant investment advisory agreements. This calculation may exceed Regulated Assets under Management as reported on the firm’s Form ADV which is limited to securities portfolios only. ↵ Return to the reference
3. Net USD returns are inclusive of all trading-related income and expenses specific to the investment program, including interest and advisory fees applied to client accounts. Advisory fees include management fees and performance fees (or performance allocations). Excludes any interest earned on unencumbered cash. ↵ Return to the reference