INVESTMENT MANAGEMENT

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Our Approach To Investing In Currency

Invariant Capital Management employs absolute return strategies that are not correlated with major indices, asset classes, or even other FX managers. Our currency fund aims to achieve consistent capital appreciation over a long-term investment horizon. In doing so, Invariant strives to limit drawdown through stringently defined risk management protocols and limited total capital risk at any given time.

Dynamic Strategies

Invariant Capital utilizes a variety of different trading strategies, incorporating aspects of trend following, counter-trend trading, and momentum trading. All positions are directional in nature. Our approach differs from many traditional trend followers who rely on a few large winning trades in a year that account for the majority of their returns. This conventional strategy often results in prolonged periods of drawdown, and necessitates the occurrence of prevailing longer-term trends. Instead, our strategies focus on taking profit more regularly and systematically cutting our losses based on a confluence of predefined market-reactive variables. This allows for a higher overall win percentage, without sacrificing a sizable profit/loss ratio. For the investor, this means a smoother equity curve, without the emotional stress of waiting for occasional home runs.

A Global Market

Invariant Capital trades exclusively in the 24-hour foreign exchange market, comprised of a global network of central banks, large banks, corporations, governments, speculators and various other institutions. Since it is the largest market in the world, with a daily trading volume in the trillions, liquidity rarely becomes a concern. In fact, Invariant only trades the world's most liquid currencies, including the USD, GBP, EUR, JPY, CHF, AUD and NZD.

Limited Risk Exposure

Invariant Capital aims to optimize returns and limit risk, and our models only produce trades that statistically have a high probability of success. Moreover, each trade has a maximum pre-specified risk allowance, significantly limiting the potential for large individual losses. Also, unlike many conventional strategies, only a fraction of investor capital is exposed to market risk at any given time. There are also periodic situations without active trades and therefore no market risk whatsoever.

Volatility Adaptive

Volatility is never a constant in the markets: at times we observe very low levels of daily fluctuations, and during other periods the swings can be extreme. Rigid strategies that work during certain types of markets often break down when the environment changes. Invariant manages all trades considering the most recent levels of volatility and the appropriate sizing of all positions is dynamically incorporated into our trading models. This allows us to profit in many different markets without any increased risk for the investor.

Time Horizon

Position holding time varies from one day to several weeks, depending on the specific trade and market conditions at the time.

Contact Us
Invariant Capital Management
350 Fifth Avenue
59th Floor
New York, NY 10018

Office:
Fax: 		1-646-350-2817
1-646-706-7732
Email: info@invariant-capital.com