With a proprietary process and approach,
we use innovative and time-tested investment strategies in equity, fixed income and derivatives markets as we look to achieve differentiated, risk-adjusted returns.
Our Concentrated Equity Strategy seeks to invest in high-quality, well-known stocks and actively deploys an innovative options strategy to drive cash flow, add equities at a lower cost and maximize the portfolio's potential.
IN SHORT: CASH FLOW RETURNS
The strategy diversifies its holdings by investing in companies that we believe have outsized longer term growth potential in different sectors. We combine equity purchases and put-sales that are struck at below current market levels, which allow us to exploit supply-demand imbalances. As a result, the risk/adjusted return is enhanced over a traditional long equity allocation.
Our put sales lead to incremental cash flow that magnifies compounded returns – and during positive market gains, there is typically minimal to no opportunity cost. During a sideways market, the strategy seeks to outperform through a buy-and-hold strategy driven by bond-like cash flow.
During a down-trending market, Concentrated Equity seeks to outperform a buy-and-hold strategy due to staggered market entry points that are additionally offset by premiums collected. Rebalancing occurs frequently, as we seek to ensure target strategic or tactical allocations are maintained while portfolio volatility is reduced.
This strategy is a new approach to taking advantage of severe market dislocations and finding a more creative way of investing alongside the stocks that have been impacted disproportionally.
IN SHORT: ADVERSE PERCEPTIONS LEAD TO INVESTING OPPORTUNITIES WITH CREATIVE THINKING
The concept behind our strategy was to identify companies whose stock price had fallen precipitously to a point where it was completely disconnected from the actual value of the company, so-called "fallen angels." We sought a way to have exposure to the upside of this opportunity without having to deploy capital to own shares in those disconnected companies outright. The solution was to use what is called a "synthetic long." This strategy involves selling a put below the current stock price and using the option premium proceeds to buy a long call slightly out of the money or above the current stock price.
This strategy represents the best example of Audent’s approach to active management using innovative products, investment styles, and risk versus reward analysis to invest during times of extreme market volatility, and then being patient to realize outsized returns.
Our Bond Enhancement Strategy takes existing assets in a portfolio, uses them to generate income, and adds more high performing assets at an effective discount to prevailing prices.
IN SHORT: ASSETS WORK HARDER, SMARTER AND BETTER
Our unique approach starts with the bonds in the portfolio being used to collateralize a put-write strategy using highly liquid options based on stock index exchange-traded funds (ETFs). We then effect a dual lever action depending on market conditions. As structured, the put-write strategy allows us to either (a) use the proceeds from selling the options to enhance the return of the bond portfolio, or (b) accumulate equity ETF positions at an effective discount during market selloffs.
With this approach, our investors are unlocking the value of the bonds and moving into and out of equities at opportune times. Simply put, this is taking the existing assets in a portfolio and making them work harder, smarter, and better.
Our flagship approach, this global buy write strategy employs the same bottom-up analysis as our Concentrated Equity Strategy, but with the added feature of writing calls on stocks and on ETF’s above the current price of the stock.
IN SHORT: A GLOBAL BUY WRITE STRATEGY THAT USES OPTIONS TO ENHANCE RETURN AND DRIVE CASH FLOW-DRIVEN RESULTS
The Global Alpha Income Strategy is designed to actively build a quality stock portfolio while using options to generate cash flow. As a whole, this strategy accomplishes several goals for investors. It is a nimble but disciplined approach that features stellar companies, strong diversification, and the ability to rebalance accounts with lower expenses.
This innovative fund approach breaks out of the buy-and-hold equity portfolio models that often show lackluster performance in the best of markets and underperforms during corrections and bear markets. We employ a buy-write (aka “covered call”) strategy, which generates income (or premium), on stock and ETF options. This options component increases cash flow and accelerates the compounding effect, yet by choosing equity index ETFs, it helps reduce exposure during market downturns.
This strategy which employs the same buy write discipline as the Global Alpha Income Strategy but with an added strategic and tactically managed fixed income portfolio. A new take on the traditional 60:40 allocation.
IN SHORT: EVERYTHING IN GLOBAL ALPHA BUT WITH A TACTICAL AND STRATEGIC FIXED INCOME PORTFOLIO
Municipal
Bond Strategy
Taxable
Bond Strategy
Enhanced
Cash Strategy
Fixed Income
Opportunity Strategy
