Posted: June 30, 2015 | by: Thomas F. McKeon, CFA
With a registration that was effective on 6/30/2010, CSCM celebrates its fifth birthday today.
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Our mission to help investors meet their objectives with greater certainty and less risk through low-cost, liquid and transparent risk-limited strategies remains as valid as ever, perhaps more so.
While market risk has been quiescent lately as the US equity markets recently reached all-time highs, the reality is that risk is a permanent aspect of the markets…sometimes dormant, sometimes quite apparent.
Our investment strategies are built to capture equity market returns, with significantly less risk, through a methodical, durable and reliable hedging program. And that is exactly what they do. In a world where the risk-free rate is zero (thanks to the Federal Reserve) and equity risk—although seemingly dormant—may soon become very apparent, our simple, methodical hedging strategy brings a lot to the investment party.
Harvesting the equity risk-premium through the monthly sale of a call option hedge, our strategies capture an additional cash-flow and source of return, that traditional investors do not earn. This monthly cash flow delivers all of the attractive characteristics of our strategies: enhanced returns—especially in low-return markets, reduced risk, smaller drawdowns, faster recoveries and superior risk-adjusted returns.
It has been a privilege and pleasure serving you for the past five years. We look forward to the next five years and beyond.
CSCM has applied for a Federal Trademark for our investment strategies. Combining the words structural and alpha into structurALPHA. The word alpha is investment industry jargon for "risk-adjusted" returns...the holy grail of investment managers and advisors--more return and less risk.
Our strategies deliver superior alpha as a function of structure, instead of constant, active decisions and trades. This is a far more reliable and prudent way to deliver what investors seek. Hence the name: structurALPHA.