WRAITH CAPITAL employs a systematic model based approach to trading with discretion at the portfolio and risk management level. The strategy is designed to minimize correlation with other asset classes such as equities, bonds and currencies. Further, the strategy seeks to use trading strategies that will have a low correlation with other hedge funds and commodity trading advisers. The execution of the models is accomplished using fully automated direct market access (DMA) using state of the art proprietary technology. The models primarily use trending and mean-reversion behavior and are applied broadly in the most liquid exchange traded futures markets. Other quantitative strategies may be deployed where they add diversified alpha to the portfolio.
The strategies have a range of holding periods from hours up to months. Short-term trading strategies provide an additional source of uncorrelated alpha that significantly improve overall portfolio performance. Higher trading frequency allows the statistical significance of trading models to be assessed with greater accuracy and improves returns consistency in a monthly time frame. The use of short-term strategies within Wraith's portfolio reduces correlation to other managed futures funds and commodity trading advisers.