Our Investment approach Oraclum Capital LLC

Fees and other details

We have traded our main strategy, the directional options strategy, during more than 110 weeks of live trading (half of which was live trading before the fund was initiated, during 2021 and 2022, half of which was during the fund’s first year of trading, in 2023). This strategy, exploiting the weekly BASON® signal of markets going up or down, buys 2-day-to-expiry call or put option spreads for S&P500 (through the SPY ETF) each Wednesday (with expiry on Friday), and sells them before the end of trading on Friday.

Investment approach Details
Investment thesis Long/short fund that uses scientific innovation to deliver alpha to its investors. We apply our options strategy on SPX and SPY indices based on weekly signals from our proprietary BASON methodology. We hedge the rest of the portfolio with US T-Bills.
Type of fund Open-ended, derivatives, equities, bonds
Access to liquidity Monthly (BASON positions opened each Wed, closed each Fri)
Entry fee 1.5% (charged as one-off upon entry)
Management fee 1.5% (charged 0.125% per month from year 2 onwards)
Exit fee 0%
Performance fee 25% (8% hurdle rate*, high watermark**)
Asset allocation 10% BASON, 90% collateral hedges
Return-adjusted allocation 80-90% BASON, 10-20% bond and equity hedges
Geographic exposure 100% USA (US equities, US bonds, US equity options, US dollar)
Sector exposure n/a (investing only into index options, no individual stocks)
Asset exposure Derivatives 10%, Equities and bonds 90%

*Hurdle rate = 8% annual, 2% quarterly (no performance fee charged if return is below the hurdle rate). **High watermark applied for quarterly earnings (meaning we cannot charge a fee if your balance is below zero YTD)