Hedge Fund Awards 2016

Hedge Fund Awards 2016 111 ~ Best for Antifragile Trading - Australia & Best Managed Futures Fund (1 Year): Global Capital Allocation Fund Tomas Capital specialises in compounding capital over the long run through antifragile trading and investment tech- niques. Adam Tomas from the firm talks us through the company’s investment strategy Tomas Capital’s flagship fund, GCAF, seeks to compound capital by capturing the long-term price trends that are characteristic of all markets from time to time. The fund’s trading activities are directed by our proprietary automated trading system that monitors a basket of 130 futures contracts across all major exchanges, asset classes and geographic regions. Risk controlled positions are entered and managed as potential upward or downward trends emerge. The concept of antifragility underpins not only the development, but also the selection of our trading strategy. We define antifragile trading strategies as exhibiting the following characteristics: • They extract profits from timeless market phenomena that have been evident to the public for many years – we call these market phenomena market axioms. • They tend to necessitate a long-term investment horizon that produces a lumpy distribution of returns (with high positive skew). • They tend to benefit from volatility, variability, dispersion and uncertainty. • They focus on reactive position taking and risk management; there is no attempt to predict market out- comes. We regard the existence of long-term price trends occurring within the financial markets as a self-evident market axiom that is unlikely to dissipate over the long-term. We further push GCAF in the direction of antifra- gility via three conceptual features that also differentiate us from other managers within the managed futures space: 1. We target price trends in longer timeframes and as a consequence do not periodically change or evolve the core trading logic that underpins GCAF. 2. We trade a large universe of futures contracts and; when global conditions require it, take on many simul- taneous positions. 3. We manage all risk at the individual trade level and do not attempt to predict inter-market correlations. Needless to say, our investment horizon is considerably long-term in nature and we seek investors who can share this horizon. We suggest a minimum horizon of five years for an investment in GCAF. The fund has been trading since July 2011 and the strategy has displayed all of the characteristics of an antifragile system with the ability to compound capital over the long-term: • The strategy has generated a compound annual return of 10.89% through to November 2015. • The strategy’s return distribution is lumpy with high positive skew – it generated 89.85% for the 2014 Calendar Year. • The strategy benefits from volatility, variability, dispersion and uncertainty – it generated 18.87% in No- vember 2014 during the sell-off in crude oil; and 37.96% in January 2015 during the sell-off in the Euro and when the Swiss National Bank unpegged the Franc from the Euro. • The strategy did not predict any events; it simply reacted Company: Tomas Capital Pty Ltd Name: Adam Tomas Email: [email protected] Web Address: www.tomascapital.com Address: 1206 / 31 Spring Street, Melbourne, VIC 3000, Australia Telephone: +61 407 996 764